My Account Menu

CAPA Login

Register to trial CAPA Membership!

Kingfisher slips, Japan Airlines and Singapore weaker, Qantas and Air New Zealand gain


Most Asia Pacific airline shares slipped on Tuesday (21-Jul-09), with Kingfisher leading the reductions, down 4.9%, following an 8.9% gain on Monday. Kingfisher stated its Board of Directors would consider a proposal to issue further share capital of up to USD104 million and other “consequential matters” at a Board Meeting to be held on 28-Jul-09.

Thai Airways also slipped yesterday, falling 1.5%, following Monday’s 2.4% gain. The carrier stated it has not experienced significant cancellations or deferment of services to Indonesia following the hotel bombings in Jakarta (the carrier is seeing bookings of 90-93% for Bangkok-Denpasar services over the next two weeks). However, as evident by the carrier’s weak Jun-2009 results, Thai Airways has seen a severe reduction in passenger traffic from East Asian countries, as a result of the swine flu scare.

Japan Airlines and Singapore Airlines shares also slipped yesterday, both down 2.1%, while Cathay Pacific remained stable.

Asia Pacific selected airlines daily share price movements (% change): 21-Jul-09

Canada - New Zealand open skies

Air New Zealand was the largest gainer yesterday, up 2.2%. New Zealand and Canada yesterday signed a Blue Sky air transport agreement, allowing an unlimited number of carriers from either country to operate passenger and all-cargo scheduled air services with unlimited frequency and designation. The agreement also enables fifth freedom rights for the countries’ carriers. A bigger issue for Air New Zealand is combating the proposed JV between V Australia-Delta Air Lines, after Air NZ's tie-up with Air Canada on the route was rejected.

Also in the Asia Pacific, Qantas' shares gained 0.5%, despite reports of a continuing loss of market share. According to Australia’s Department of Infrastructure, Transport, Regional Development and Local Government, Qantas’ market share on international services fell 3.8 ppts to 22.4% in Apr-2009, with Jetstar increasing its market share to 6.9% (up 1.1 ppts), for a Group market share of 29.3%. Among the Top 5 international carriers, Emirates was the only carrier to gain market share, up 0.7 ppts, to become the fourth largest international carrier, with a 7.5% market share.

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.