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North Asian carriers fall on Japan earthquake fallout; Chinese airlines report traffic increase

15-Mar-2011

Shares in carriers in North Asia tumbled when trading began this week, with Asiana Airlines down more than 10%, while shares in China Airlines, All Nippon Airways and Korean Air all fell heavily. Also down was Air New Zealand, which dropped 9%.

Shares in Indian carriers were generally stronger, with Jet Airways up 6.2%, Kingfisher up 3.7% and Spicejet up 3.6%.

UB Group, parent of United Breweries Holdings Ltd, stated the majority shareholders of Kingfisher Airlines pledged 55.5% of the carrier. UB Group CFO, AK Ravi Nedungadi explained the pledge is "essentially a repledge". The airline’s board had approved a plan to convert debt of as much as INR13.6 billion (USD302 million) into equity. As part of this, the carrier will allot redeemable preference shares worth INR5.75 billion (USD105 million) at 8% for 12 years to lenders while a further INR7.8 billion (USD173 million) of debt would be converted into compulsorily convertible shares at a rate of 7.5%.

CAAC reported China’s aviation industry reported CNY1740 million (USD263.6 million) in profit in Feb-2011. According to CAAC, cargo traffic fell in Feb-2011, after 20 consecutive monthly increases. The civil aviation authority also reported the following financial/traffic highlights in Feb-2011:

  • Profit: CNY1740 million (USD263.6 million);
  • Passenger numbers: 21.6 million, +6.8% year-on-year;
  • Cargo volume: 300,700 tonnes, -11.8%.

Air China reported the following traffic highlights in Feb-2011:

  • Passenger numbers: 3.7 million, +4.5% year-on-year;
    • Domestic: 3.0 million, +5.3%;
    • International: 494,800, +0.7%;
    • Regional: 133,000, +0.9%;
  • Load factor: 79.4%, +0.4 ppts;
    • Domestic: 81.7%, +4.3 ppts;
    • International: 75.9%, -6.1 ppts;
    • Regional: 77.5%, stable;
  • Cargo volume: 64,507 tonnes, -12.1%;
    • Domestic: 33,085 tonnes, -15.1%;
    • International: 28,385 tonnes, -8.8%;
    • Regional: 3037 tonnes, -7.7%.

China Eastern Airlines passenger numbers up 7.2% - traffic highlights in Feb-2011:

  • Passenger numbers: 5.1 million, +7.2% year-on-year;
    • Domestic: 4.2 million, +6.1%;
    • International: 636,350, +19.4%;
    • Regional: 227,820, -1.9%;
  • Passenger load factor: 77.4%, +2.2 ppts;
    • Domestic: 79.8%, +4.2 ppts;
    • International: 73.4%, -1.0 ppts;
    • Regional: 70.2%, -3.2 ppts;
  • Cargo volume: 77,830 tonnes, -17.5%;
  • Cargo load factor: 49.6%, -2.9 ppts.

Cathay Pacific reported the following traffic highlights in Feb-2011:

Hainan Airlines financial highlights for the 12 months ended 31-Dec-2010 (Based on Chinese Accounting Standards):

  • Total operating revenue*: USD3301 million, +39.6% year-on-year;
    • Passenger revenue: USD2792 million, +42.9%;
    • Cargo: USD125.7 million, +71.3%;
  • Costs: USD2356 million, +16.9%;
  • Operating profit: USD426.2 million, compared with a loss of USD10.0 million in p-c-p;
  • Net profit: USD458.4 million, +800.6%;
  • Passenger numbers: 18.6 million, +6.9%;
  • Cargo volume: 282,500 tonnes, +19.7%;
  • Passenger load factor: 81.7%, +3.7 ppts;
  • Total assets: USD10,883 million, +20.6%;
  • Total liabilities: USD8839 million, +11.4%;
  • 2011 forecast:
    • Revenue: 3650 million;
    • Costs: USD3042 million;
    • Profit: USD608 million;
    • Passenger numbers: 20 million, +7.3%;
    • Cargo volume: 321,100 tonnes, +13.7%.

*Based on the conversion rate USD1 = CNY6.575

China Airlines reported the following traffic highlights in Feb-2011:

  • Passenger traffic (RPKs): -6.8% year-on-year;
  • Passenger load factor: 76.6%, -3.3 ppts;
  • Passenger yield*: USD8.68 cents, +8.8%;
  • Cargo traffic (FTKs): -26.7%;
  • Cargo load factor: 70.2%, -0.8 ppt;
  • Cargo yield: USD26.70 cents, +3.3%.

*Based on the conversion rate USD1 = TWD29.477

Selected APAD daily share price movements (% change): 14-Mar-2011


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