Jet Airways’ shares slipped 1.1% yesterday, as the airline's Executive Director, Saroj K Datta, cautioned that “yields show no signs of improving, and so long as revenue for passengers is low, it will be difficult to come back to profitability”.
Mr Datta added that the carrier “may break even, but only for a short period”. Indian airlines are facing over-capacity in the Indian aviation market, which has further pressured yields and profitability.
‘Buy’ rating on Korean Air shares reinstated by Bank of America Merrill Lynch
Bank of America Merrill Lynch stated that Korean Air is seeing a faster traffic recovery than regional rivals, as passenger and cargo returned to positive growth in September due to its Asian focus”, adding, “we look for a steady recovery aided by currency effects."
Hainan Airlines cargo volumes jump, pax also up by double digits
Hainan Airlines, meanwhile, reported a 53% jump in cargo volume in Sep-2009, with passenger numbers also up by double digits (+16% to 1.4 million pax). Load factors, however, slipped 2.6 ppts to 74.1%. The carrier’s shares were down 1.1% yesterday.
Also in China, China Eastern’s shares were down 3.9% yesterday, as UBS reiterated its ‘sell rating’ for the company. UBS also adjusted the target price of China Eastern's H-shares from HKD1 to HKD1.30.
Asia Pacific selected airlines daily share price movements (% change): 12-Oct-09
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