Passenger numbers, passenger load factors and cargo volumes also gained (pax rose 3.9% to 569,363; pax load factor increased 2.6 ppts to 83.4%; cargo volume soared 49.2% to 74,561 tonnes). Shares in the carrier rose 0.5% yesterday.
Cathay Pacific returning to pre-financial crisis capacity levels
Also in North Asia, Cathay Pacific announced plans to increase capacity Australia, New Zealand, Canada, France and Japan, as part of the airline’s plan to reinstate more passenger capacity in line with continued strong demand. The carrier stated it plans to increase overall passenger capacity by approximately 4%, and thus “returning to 2008 pre-financial crisis levels”. Shares in the carrier gained 3.4% yesterday.
See related reports:
- Cathay seeing “continuing and significant” recovery; profitability jumps
- Cathay Pacific: No time to get excited, but performing better over long term than Singapore Airlines
Thai Airways urged to explore stakeholding in Tiger Airways
In Southeast Asia, Thai Airways' shares rallied 6.3% yesterday, outpacing a flat close in the general market.
There have been reports in the Bangkok Post today that Thai Board Member Sathit Limpongpan, also Permanent Secretary for Finance, suggested the flag carrier's management explore the possibility of becoming a stakeholder in Singapore-listed Tiger Airways Holdings Ltd. Dr Sathit reportedly floated the idea at a Thai board meeting last month.
Tiger Airways shares downgraded
DBS Vickers downgraded Tiger Airways from “buy” to “hold”, reducing its target price by approximately 11%. The changes follow the release of the carrier’s financial results late last week and expected start-up losses related to the Thai Airways-Tiger LCC JV.
Macquarie Equities also downgraded the stock from ''outperform'' to ''neutral''. Shares in the carrier were not traded, due to a public holiday in Singapore, although the carrier’s share price on Friday suffered its largest single day fall since its was floated seven months ago, dropping 7.6%.
Standard and Poors sees LCCs remaining dominant players in Southeast Asia
Standard & Poor's Aviation Analyst, Shukor Yusof, commented that LCCs “still remain the dominant player in Southeast Asia and also away from Southeast Asia because of their first mover advantage and their ability to understand the intricacies of the low cost model.”
India benchmark stock index advances to 30-month high
In India, India’s benchmark stock index advanced to a 30-month high, amid expectations that rising incomes and the nation’s economic growth will boost profitability. Shares in Kingfisher, SpiceJet and Jet Airways all gained yesterday, with increases of 1.8%, 1.8% and 1.1%, respectively.
Asia Pacific selected airlines daily share price movements (% change): 09-Aug-2010
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