My Account Menu

CAPA Login

Register to trial CAPA Membership!

SpiceJet and China Eastern swing to profitability, Jet Airways' woes continue


Asian airline shares were generally higher on Monday (27-Jun-09), reflecting stronger conditions on Asian equity markets. The Chinese carriers were the strongest gainers yesterday, with China Southern, China Eastern, Hainan Airlines, Air China and Cathay Pacific rising 8.0%, 7.3%, 6.7%, 5.0%, 3.0% and 1.5%, respectively, as the Shanghai stock market gained 1.86% to a 14-month closing high.

China Eastern Air Holding, parent of China Eastern Airlines, meanwhile stated it swung to a profit in 1H2009, on improved domestic travel demand and as the company cut costs by 12% (or USD16.5 million). The carrier expects to return to the black in 2009.

In the Indian market, Jet Airways shares gained 0.1% yesterday, but declined the most in more than a month during the day in Mumbai trading (by as much as 9.6%), after posting a USD47 million loss in the three months ended Jun-2009. The carrier continues to lose market share, with domestic passenger numbers down 17.8% in Jun-2009 (total pax down 11.1%), with cargo volume slumping 11.3%.

Also in the Indian market, SpiceJet's shares gained 1.3%, after the carrier returned to profitability in the three months ended Jun-2009, with a USD5.5 million profit (compared to a USD26.8 million loss in the previous corresponding period), in what CEO, Sanjay Aggarwal, described as an “amazing result” in the current environment. Revenue increased 31.2% in the period. Kingfisher's shares gained 1.6% yesterday.

Leading the decliners on Monday was AirArabia, which slipped 3.9%, the largest reduction since 13-Jul-09, with Emaar Financial Services stating the reduction is a result of a “knock-on effect” after Ryanair reported lower-than-expected financial results. AirArabia is scheduled to release its financial results early next month.

Asia Pacific selected airlines daily share price movements (% change): 27-Jul-09

Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.