China Airlines and EVA report robust May-2010 revenues; Cathay yields improve


Shares of China Airlines and EVA Airways closed sharply higher on Thursday, gaining 5.4% (with 39.95 million shares changing hands) and 4.2%, respectively, after both carriers reported robust May-2010 sales figures.

  • China Airlines and EVA Airways report strong sales figures for May 2010, with revenues increasing on a month-on-month and year-on-year basis.
  • Cathay Pacific sees improvement in yield and passenger volumes in May 2010 compared to the previous year, although still below pre-crisis levels.
  • JAL Group reports a decline in international passenger levels in April 2010, while domestic passenger numbers show a slight increase.
  • AirAsia X considers listing on the Hong Kong or New York stock exchange for its upcoming IPO, with an estimated valuation of USD500-600 million.
  • China Airlines and EVA Airways benefit from strong demand on cross-Strait services and recent fare increases on cargo routes to Europe.
  • Cathay Pacific's passenger business performs well in May 2010, with a significant increase in passenger numbers and improved load factors.

During the month, China Airlines reported a 7.7% increase in revenues on a month-on-month basis, with revenues soaring 74.5% on a year-on-year basis, while EVA Air's sales rose 5.2% on a month-on-month basis and 73.2% year-on-year. Both carriers are benefiting from strong demand on cross-Strait services and recent fare increases on cargo routes to Europe.

Cathay Pacific's yield and passenger volumes improve in May-2010; remain below pre-crisis levels

Also in North Asia, Cathay Pacific (shares up 0.1%) stated yield and passenger volumes improved in May-2010, compared to the same month in 2009, when the carrier's business was negatively affected by the economic downturn and the swine flu outbreak. GM Revenue Management, Tim Owen, commented that, "although still below pre-crisis levels, the pick-up in demand in our premium cabins continued last month and the overall outlook for the summer peak still remains solid".

During the month, which is traditionally one of the carrier's "softer month", the carrier's passenger business "held up well", with a 12% year-on-year increase in passenger numbers to 2.2 million, and a 5.5 ppt load factor improvement to 81.3%. Cargo volumes increased 30%. During the month, the carrier's China network in particular performed well (RPKs increased 34% year-on-year) boosted by the Shanghai Expo.

JAL's international passenger levels slump in Apr-2010

Also reporting traffic results yesterday, although for the month of April, was JAL Group. The carrier reported a slight increase in domestic passenger numbers (increasing 0.5% to 2.8 million passengers) but domestic passenger numbers were down by double-digits, slipping 13.4% to 772,000. Load factors were up both on the domestic and international networks, by 3.4 ppts to 56.2% and by 5.2 ppts to 70.2%, respectively.

AirAsia X to be listed in Hong Kong or New York?

Meanwhile, AirAsia X is reportedly considering listing on the Hong Kong or New York stock exchange, following proposals from foreign investment banks pitching to secure the mandate for the carrier's IPO. The IPO is likely to value the carrier at USD500-600 million.

Asia Pacific selected airlines daily share price movements (% change): 10-Jun-2010

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