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Shanghai Airlines goes into trading halt, Asiana down ahead of results - share wrap

Shangai Airlines CEO, Fan Hongxi
Shangai Airlines CEO, Fan Hongxi

Shanghai Airlines requested a trading halt on 05-Feb-09, confirming it is in talks for an emergency government capital injection to lower its gearing ratio. Shanghai Airlines had total debts of USD1.9 billion as at 30-Sep-08.

In Dec-08, the airline reportedly applied for a USD439 million capital injection from Shanghai Municipal Government, which holds a 35.7% stake in the carrier. Shanghai Airlines last month estimated its net losses for 2008 would be more than double 2007's CNY435 million, due to weak demand and fuel hedging losses. Other Chinese airlines gained yesterday, with China Southern Airlines up 3.2%, Air China up 2.3% and Hainan Airlines up 1.3%.

Asiana Airlines shares fell 5.2% ahead of the airline's fourth quarter results announcement. Japan Airlines (-1.0%) and Singapore Airlines (steady) are also reporting their earnings later today.

Qantas shares slumped 17.5% as it concluded an issue of new shares to raise AUD500 million (USD322 million) to help defend its credit rating.

Asia Pacific selected airlines daily share price movements (% change): 05-Feb-09

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