EVA Air sees better times ahead

EVA Air Vice Chairman, Cheng Kuang-yuan, has told an annual shareholders' meeting that the worst is already over for the airline industry, adding that demand on key routes to Japan and the US would return to normal levels during 3Q2011.

The airline is expected to generate improved earnings if oil prices stabilise. Investors seemed unconvinced. EVA Air and China Airlines closed at TWD28.05 and TWD18.45 on Friday, down 2.8% and 2.4%, respectively.

Meanwhile, shares in Garuda Indonesia gained 1.9% on Friday. The carrier is expected to announce an order for 25 180-190 seat aircraft (plus 25 options) at the Paris Air Show which commences next week. The aircraft would be used by its domestic subsidiary, Citilink, with deliveries commencing in 2014. Garuda is also planning to order up to 25 regional jets during 3Q2011.

Selected Asia Pacific daily share price movements (% change): 10-Jun-2011

Selected APAD daily share price movements (% change): 13-Jun-2011