Asian airline shares nosedive as recession panic sets in

Global share markets have been savaged this week as each wave of economic data points to a deep and lasting recession in the major world economies. This increasing realisation sent oil prices tumbling below USD50 for the first time since May 2005. For many Asian carriers, this will magnify paper losses on wrong-way bets on fuel hedges, but for all airlines it signifies sharply weaker economic prospects, and therefore, weaker demand.