China Airlines and EVA Air’s yields remain depressed; JAL downgraded (again)
Taiwan’s leading airlines, China Airlines (+0.5% yesterday)and EVA Air, reported continued double-digit reductions in passenger yields, of 21.8% and 14.9% respectively, in Sep-2009. These falls are, however, an improvement from Aug-2009 and Jul-2009 levels, and come off a base of growth in Sep-2008.
Awful cargo yields
EVA and CAL face the prospect of a slow recovery in yields. For the cargo segment, the coming weeks will be crucial, with airlines banking on signs of the usual pre-Christmas cargo rush.
Japan Airlines downgraded (again) by S&P
Also in North Asia, Japan Airlines’ shares were up 0.9%, despite the carrier’s being further downgraded by Standard and Poor's from already speculative grades, following a previous downgrade less than three weeks ago.
S&P lowered the long-term corporate credit ratings on JAL and Japan Airlines International by two levels, from ‘B-minus’ to ‘CCC’ and maintained its credit watch with a negative outlook. The downgrade "is based on the recognition it is becoming more likely that JAL will opt for a debt waiver by its creditors or for a debt equity swap in its restructuring plan" under the supervision of a quasi-public body.
Kingfisher up 14.2% as dispute with Bharat Petroleum is resolved
Shares of Kingfisher Airlines rose 14.2% yesterday after the company was reported to have reached an out-of-court settlement with Bharat Petroleum Corp Ltd (BPCL) over a long-pending ATF payment. Kingfisher, which reportedly owes BPCL USD67 million, will reportedly pay USD8.5 million in the next 12 days and the rest in 12 monthly instalments.
Meanwhile, Virgin Blue (-3.0%) shares showed the largest fall yesterday.
Asia Pacific selected airlines daily share price movements (% change): 04-Nov-09