Cathay Pacific’s shares slump, Taiwanese airlines gain
Cathay Pacific’s shares tumbled 7.2% yesterday amid broad weakness on the Hong Kong Stock Exchange, which fell the most in three weeks.
Investors are concerned the airline’s stellar recent profit growth may slow in 2011. IATA stated yesterday that slower global economic growth and rising fuel costs may have an impact on airline profits next year.
Cathay Pacific’s shares over the past month (HKD)
Source: Centre for Asia Pacific Aviation and Reuters
Elsewhere, Taiwanese carriers China Airlines and EVA Air rose 0.4% and 0.6% yesterday as investors considered the positive effects of the rising Taiwan dollar on airline earnings.
EVA Air announced plans to acquire a 16% stake in Shanghai-based China Cargo Airlines Ltd.
Asia Pacific selected airlines daily share price movements (% change): 15-Dec-2010
Source: Centre for Asia Pacific Aviation, Reuters & Financial Times