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Thai Airways slips to net loss in 3Q2009; SIA seeing increased premium demand

17-Nov-2009

Thai Airways International’s shares were down 1.0% yesterday, as the carrier slipped to a net loss of USD121.5 million in 3Q2009, due predominantly to foreign exchange losses (due to the appreciation of Euro and Japanese yen) and falling passenger yields (-17% to USD 5.85 cents ex-fuel surcharge from 2Q2009 levels).

Singapore Airlines seeing increased premium demand, and bottoming out of demand declines

Shares in Singapore Airlines gained 0.9%, after the carrier, upon the release of the carrier’s Oct-2009 traffic results, stated there are “encouraging signs that the decline in demand may have bottomed out”, with the airline also seeing “increasing demand” in the premium classes.

Also in the month, the carrier reported a 9.6% reduction in passenger numbers to 1.4 million, while passenger load factor was up 3.6 ppts to 81.1%, for the second consecutive month of load factor improvements.

Asia Pacific selected airlines daily share price movements (% change): 16-Nov-09

Tiger Airways reports USD20 million loss in 12 months to Mar-2009

In other Singapore Airlines news, SIA confirmed it has stopped accounting for its share of further losses from the LCC, after Tiger Airways reported a loss of SGD28 million (USD20 million) for the 12 months ended 31-Mar-2009. Singapore Airlines cumulative losses in Tiger have now increased to SGD45 million (USD33 million), after initially injecting SGD39 million (USD28 million) in the carrier. 

Qantas expected to reduce premium seating in reaction to reduction in premium travel demand

Qantas’ shares remained stable yesterday. Separately, the Australian Financial Review today reported that the carrier plans to reduce the number of first and business class seats on its long-haul fleet, as part of a review of seating following a slump in premium travel demand, amid the global economic downturn. An announcement from Qantas of the changes is expected to be made by the end of Dec-2009.

Chinese airline stocks perform strongly

Chinese airline stocks, meanwhile, performed well yesterday, with China Eastern soaring 10.8%, Air China up 9.1%, and Hainan Airlines, China Southern and Shanghai Airlines up by 5.4%, 5.1% and 3.8%, respectively. Cathay Pacific Airways also gained, up 1.6%, respectively. 


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