Air China soars, Qantas and Virgin Blue higher. Thai Airways sold off – Share Wrap
It was Air China’s turn to soar on the stock market yesterday (+9.4%), after rivals China Eastern and China Southern advanced strongly on Monday as investors bet on an economic recovery. Qantas shares rose 5.5% as the carrier unveiled a frequent flyer partnership with grocery and liquor retailer, Woolworths, while Virgin Blue advanced 5.4%.
Investors finally caught up to the bad news from Thai Airways that its profit outlook is uncertain. Acting President, Narongsak Sangapong, told Dow Jones last Friday that falling passenger numbers would hit the carrier’s second quarter earnings. He stated, “our passenger numbers currently are falling by around 15%-20%. We're not sure whether we could make a profit in the second quarter”.
Thai carrier requires up to USD1 billion in funding to improve liquidity and strengthen its working capital. It is considering issuing new shares to help finance its long-term restructuring plans. Thai’s shares closed 6.7% lower yesterday.
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Asia Pacific selected airlines daily share price movements (% change): 01-Jun-09