Core Viewpoint - The aviation sector continues to experience a downward trend in stock prices, influenced by rising fuel costs and geopolitical tensions, particularly related to U.S. tariffs on Indian goods and sanctions on Iran [1] Group 1: Stock Performance - China National Aviation (601111) saw a decline of 4.51%, trading at HKD 5.29 [1] - Capital Airport (00694) dropped by 3.15%, with a price of HKD 3.07 [1] - China Southern Airlines (600029) fell by 2.43%, priced at HKD 3.62 [1] - China Eastern Airlines (00670) decreased by 2.74%, trading at HKD 2.84 [1] Group 2: Geopolitical Impact - U.S. President Trump announced a 25% tariff on goods exported from India starting August 1, raising concerns about supply chain disruptions [1] - Additional sanctions may be imposed on India due to its continued energy purchases from Russia, further escalating geopolitical tensions [1] Group 3: Fuel Costs and Financial Implications - Fuel costs remain the largest expense for airlines, and rising oil prices are expected to lead to higher fuel surcharges [1] - The rapid increase in fuel prices may negatively impact demand due to cost pass-through effects, worsening airline profitability [1] - Airlines face significant foreign currency exposure due to aircraft purchases and leasing, which could result in substantial foreign exchange losses amid currency depreciation [1]