Korean Air Shares Jump 11.17% to 52-Week High as Oil Falls
Key Facts
Korean Air shares rose 11.17% to 32,350 won on November 10, reaching a 52-week high, according to Investing.com. The gain came amid a regional rally in airline stocks, as lower oil prices bolstered investor expectations that fuel cost pressures on the sector would ease. Asiana Airlines shares rose 11.81% to 8,710 won, while Jin Air jumped 29.27% to 7,950 won in the same session. The moves coincided with a 4% rise in South Korea’s KOSPI index on November 10, according to Reuters via MarketScreener. But the impact of lower crude prices on airlines may be delayed, as oil price movements do not translate immediately into lower jet fuel costs.
Brent crude fell 5.85% to $92.57 a barrel at Monday’s settlement on November 9, while West Texas Intermediate fell 4.38% to $86.85, according to Investing.com. The Associated Press reported that Brent fell 5.8% to $92.57 that day, after trading above $112 at the start of November. The agency linked the oil decline to remarks by President Donald Trump over the weekend, saying a resumption of strikes was “highly unlikely” if the United States saw progress in negotiations. The remarks provide context for the decline in crude, but do not mean a peace deal is imminent. In the South Korean market, airline shares rose on optimism about the possibility of lower fuel costs, not because existing operating pressures had disappeared.
Korean Air’s quarterly figures highlight the scale of those pressures before the latest oil decline: fuel expenses rose 67% year over year to 1.70 trillion won in the third quarter, according to Investing.com. The International Air Transport Association also forecast an average jet fuel price of $152 a barrel in 2026, an increase of about 70% from 2025. The association estimated that fuel would account for 31.4% of airlines’ operating expenses during the year. Higher refining margins and existing hedges limit how quickly lower crude prices pass through to the jet fuel price airlines pay. The share rally may therefore reflect improved expectations for future costs, while expenses recorded in the third quarter remain high.
Qantas illustrates how fuel price volatility affects operating forecasts: it raised its estimate for fuel costs in the first half of its 2027 financial year by A$150 million to A$3.75 billion, despite hedging about 85% of its financial-year requirements, according to Investing.com. In South Korea, Korean Air said higher fuel surcharges and a weaker won somewhat dampened demand for travel originating in the country during the third quarter. The company added that demand for inbound travel to Korea and transit traffic through Incheon increased. This means demand performance varied by route, alongside the burden of fuel and the exchange rate. These factors intersect with the share gains fueled by lower oil prices, but remain operational factors distinct from a single day’s market move.
In its published fuel surcharge table for tickets departing from Korea, Korean Air raised charges in November compared with October across all listed distance categories. On routes between 5,000 and 6,499 kilometers, charges rose from 322,000 won in October to 370,100 won in November. The increase shows that some fuel cost pressures continue to be passed on to travelers, even as oil prices fell in the November 9 session. The company had forecast continued fuel cost pressure in the fourth quarter amid the ongoing war in the Middle East. It said it would focus passenger traffic growth on inbound travelers and passengers transiting through Korea, while adjusting cargo capacity according to market conditions. The plan indicates that the company expects to continue managing its demand mix and capacity alongside monitoring fuel costs.