Domestic airline stocks are rising across the board as international oil prices plunge following the conclusion of end-of-war talks between the United States and Iran.
At 9:41 a.m. on the 15th, Jeju Air was trading at 5,390 won, up 1,050 won (24.19%) from the previous session on the Korea Exchange. After opening up 8.06% from the previous session right after the market opened, Jeju Air jumped intraday as much as 29.72% to 5,630 won, setting this month's high.
Other airline-related stocks are also posting sharp gains across the board. At the same time, low-cost carrier (LCC) shares such as Trinity Airways (19.77%), Jin Air (16.88%), and AIR BUSAN (16.15%) are showing gains in the 15% to 19% range.
Flag carriers Korean Air Lines and Asiana Airlines are also trading at sharply higher levels, up 12.78% and 12.59%, respectively.
Airline holding company stocks Hanjin KAL (9.67%) and Hanjin KAL preferred (7.29%) are also strong.
The simultaneous strength in airline stocks is being attributed mainly to falling oil prices following the end of military risk from the Middle East. U.S. President Donald Trump recently made official on social media that he had reached an end-of-war agreement with Iran.
In a social media post, President Trump said, "The agreement with the Islamic Republic of Iran is being finalized now," and "I fully approve the open, toll-free passage of the Strait of Hormuz."
With the war-ending announcement sending international oil prices sharply lower, expectations that fuel costs—the largest expense item for airlines—will be greatly eased appear to be boosting investor sentiment.
Currently, the price of West Texas Intermediate (WTI) crude for July delivery is trading at $80.78 per barrel, down 4.83% from the previous session's close. WTI fell intraday to as low as $80.25 per barrel on the day, marking the lowest level since Mar. 10, early in the outbreak of the Middle East war.