Fewer headlines…but still plenty to say
SYDNEY (Centre for Asia Pacific Aviation) - After the flurry of results that characterised August, September's news flow has been somewhat more sedate. Hurricane Katrina has put further pressure on the financially-embattled US airlines (of which two filed for bankruptcy protection during the month) and further lifted the price of jet fuel. However, there has been little other thematically linked action to talk about in the Asia Pacific region.
This has seen us focus on more company specific issues. We have rounded out our results analysis with a look at the PRC carriers' numbers for the six months ended 30-Jun-05. Had it not been for a comparatively robust showing by Air China and - to a lesser extent - CNAC, the red ink for the period would have been deep indeed.
Despite the very strong growth recorded and the regulated price of jet fuel (the increase in which lagged the rest of the world), profitability eluded the group in the aggregate. Unrealised foreign exchange gains aside, we wonder whether the burden of consolidation will permit profits in 2H05.
Read the rest of this report in October's edition of Airline Investor Monthly.
Written by Timothy Ross, formerly of UBS, Airline Investor Monthly covers in-depth analysis of Asia Pacific airline financial results and strategic developments.
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