Chinese carriers benefit from reduced fuel prices and further cash injections

Asian airline shares were generally higher on Tuesday (28-Jun-09), reflecting stronger conditions on Asian equity markets and lower fuel prices. The Chinese carriers were, again, the strongest gainers yesterday, with China Southern and China Eastern soaring 11.2% and 10.0%, respectively, following gains of 8.0% and 7.3% on Monday, as the Shanghai Stock Market increased its winning streak to five sessions, gaining 6.3% to a new 14-month closing high. Air China and Cathay Pacific gained 5.0% and 3.0%, respectively.