According to CAAC, China’s aviation industry has made a “massive recovery”, with Chinese carriers reportedly achieving a combined CNY8 billion (USD1 billion) profit in 2009 as of 12-Sep-2009, compared to a loss of USD4.1 billion in 2008. No breakdown of the profit figure was provided.
CAAC also stated passenger numbers were up 42% in Aug-2009 (following a 12% contraction in Aug-2008 due to additional security controls put in place for the Olympics), with cargo volumes increasing 18% year-on-year.
Asia Pacific selected airlines daily share price movements (% change): 15-Sep-09
JAL down on share sell-off
Japan Airlines' shares slipped 3.4% on Tuesday, as investors took profits following sharp gains on Monday, following news over the weekend of negotiations for a capital alliance between the airline and overseas counterparts, including American Airlines and Delta Air Lines.
The sell-off suggests that the market remains skeptical of the carrier’s prospects of returning to profitability, despite a three-pillar recovery plans to make "drastic reductions" to its route network (reportedly to include reductions of approximately 20% of its international network), a review of personnel costs (involving the expected reduction of 14% of its workforce) and a capital tie-up, possibly with an international partner.
JAL's shares have fallen 20% so far in 2009, compared to a 15% gain in the Nikkei 225 Stock Average.
Japan Airlines share price growth: Jan-2009 to Aug-2009
Also in Japan, ANA's shares were down slightly (-0.4%) on Tuesday, as the carrier reported an 8.0% reduction in domestic passenger numbers and a 5% gain in international passengers in Aug-2009.
Domestic load factors were also down (-3.3 ppts to 67.5%), while international load factors were stronger, gaining 4.6 ppts to 80%. Cargo volume also remained in negative territory, down by approximately 3% domestically and internationally.
Singapore Airlines see double-digit passenger and cargo contractions in Aug-2009
In other traffic news, Singapore Airlines experienced double-digit contractions in both passenger numbers and cargo volume in Aug-2009, down 16.0% (to 1.4 million) and 16.9%, respectively, as the economic slowdown continued to negatively impact demand.
Singapore Airlines RPK growth and ASK growth: Aug-08 to Aug-09
SIA's load factors were also down, by 1.1 ppts to 78.3%, and have been falling for over a year.
Singapore Airlines passenger number growth and PLF growth: Aug-08 to Aug-09
Shares in the listed Indian carries were up yesterday, as the Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum decreased jet fuel prices by approximately 3.2% on 15-Sep-09, following three consecutive increases. Leading the gains was SpiceJet, which soared 16.2% yesterday.
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