Shares in China Southern gained 0.8% yesterday in Hong Kong trading, despite the broader marking falling 0.2%, as the carrier stated it expects to report double-digit growth in passenger and cargo volumes in 2010.
The carrier is also set to benefit from a rising Chinese Yuan, as its US dollar dominated debts account for 89.5% of total debt. CEO, Xu Jiebo, added that if the Yuan rises by 1%, it could record CNY500 million of exchange gains.
CEO, Xu Jiebo, also stated he believes there is "room for raising ticket prices” in 2010, adding the carrier plans to seek cooperation with international and domestic airlines to develop its air cargo business. Hong Kong-listed shares in China Southern have risen 59% so far in 2010, outperforming a 29% gain experienced by Air China. Shares in China Eastern and Air China slipped 4.6% and 2.9% respectively yesterday.
See related report: China Southern Airlines returns to the black, favourable outlook
Tiger Airways pax and load factor levels improve in Mar-2010
Tiger Airways reported a 51% increase in passenger numbers in Mar-2010, to 488,000, with an average passenger load factor of 84% (+3 ppts). In the 12 months to Mar-2010, the carrier handled 4.9 million passengers (+54%) with an average passenger load factor of 85% (+6 ppts).
For this and more coverage of the region’s aviation updates, subscribe to Asia Pacific Airline Daily. Other highlights in today’s edition include:
- ANA planning to sell USD107 million of five year bonds;
- China Eastern remains in talks with all three global airline alliances;
- Spring Airlines confirms international AOC, commences preparatory work for international launch;
- Garuda Indonesia to phase out 16 Boeing aircraft;
- Indonesia's Ministry of Transport targets 77.6 million domestic pax by 2015;
- Qantas sees "50/50" chance a global standard on emissions trading will be reached;
- REX passenger numbers down 6%, load factor also down in Jan-2010;
- Indian Minister for Civil Aviation states the worst is over the civil aviation industry and Air India;
- ACCC institutes proceedings against Malaysian airline companies for alleged price fixing.
Asia Pacific selected airlines daily share price movements (% change): 13-Apr-2010
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