Korean Air and Asiana rally. Jetstar expands in Singapore, Qantas falls, SIA gains
Korean Air and Asiana Airlines defied a 0.4% fall in the South Korean Kospi Index yesterday, as investors become increasingly optimistic about rising demand and the earnings outlook. Their stocks both rose 5% on Wednesday on expectations for strong traffic in May - a month including several public holidays in Korea.
See related report: Korean Air and Asiana Airlines back in the earnings sweet spot
Jetstar spreads its wings in Singapore
Qantas' shares eased 1.9% as its low cost unit, Jetstar, confirmed plans to base two A330-200s in Singapore to launch long-haul services to Australia, North Asia and Europe from late 2010. Destinations have yet to be finalised, but pre-sales for at least two routes will commence shortly, once discussions with destination airports have been finalised.
The aircraft will be delivered in Dec-2010 and Jan-2011. More routes will be added when two more A330s join the fleet in late 2011 ahead of the delivery of B787 aircraft.
Singapore Airlines gained 1.9% yesterday.
Shares in China Southern fell a further 4.8% yesterday, while Hainan Airlines lost another 3.8%.
Asia Pacific selected airlines daily share price movements (% change): 12-May-2010
Source: Centre for Asia Pacific Aviation & Reuters