OSK also downgraded AirAsia’s fair value to MYR1.13, “based on 10x FY10 EPS”, adding that it believes “the price undercutting (for air fares) and escalating crude oil price would persist in the short to medium term”.
Selected LCCs daily share price movements (% change): 23-Nov-09
Demand and fares remain under pressure in the Canadian market
In Canada, fares and passenger traffic remain under pressure, with analysts Raymond James stating that overall prices are still down 3.5% at Air Canada and 7.5% at WestJet Airlines on a year-on-year basis. WestJet’s shares fell 3.1% on Monday.
US airline stocks, meanwhile, gained with the broader market on the day, as investors halted a three-day selling streak on several factors, including better-than-expected home sales numbers. The US Federal Reserve, meanwhile, reaffirmed its intention to maintain a loose monetary policy for the foreseeable future.
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