Cebu shares jump on share buyback; Cathay warns over fare increases
Cebu Air Inc’s board of directors approved the creation and implementation of a share buyback programme involving USD46.3 million (PHP2 billion), approximately 4.22% of the company’s current market capitalisation. The programme hopes to stem the price decline of its shares on the Philippine Stock Exchange.
The carrier listed in late Oct-2011. Shares in the carrier jumped 10.1% in trading on 01-Mar-2011.
Cathay Pacific CEO Tony Tyler has raised concerns over the dampening effect on demand that could eventuate if airlines raise fares or fuel surcharges in light of rising fuel costs.
Tiger Airways announced that of the proceeds raised from the company’s initial public offering, USD2.9 million (SGD3.7 million) has been used to repay outstanding short-term loans and USD17.2 million (SGD21.9 million) has been utilised to fund the acquisition of aircraft and associated pre-delivery payments. The company will have disbursed an aggregate of USD164 million (SGD208.9 million) of the net proceeds of the IPO.
Qantas Airways reports the following traffic highlights in Jan-2011:
- Passenger numbers: 3.7 million, +9.5% year-on-year;
- Passenger load factor: 80.9%, -0.3 ppt;
Selected APAD daily share price movements (% change): 01-Mar-2011