Hainan Airlines, Air China, China Southern and EVA shares up as most Asia Pacific airlines slip
Hainan Airlines, which earlier this week relaunched its Deer Air subsidiary under a new brand, Capital Airlines, based in Beijing, enjoyed a 2.5% increase on the day. The Hainan Airlines Group, together with state-owned Beijing Tourism Group simultaneously injected CNY1.5 billion yuan into the carrier in the ration of 70:30.
Taiwanese airline stocks were mixed, as Taiwan faces increasing inflationary pressures and the overall index fell almost 3%; China Airlines was down 2.7% and EVA Air (+2.5%) moved almost the same percentage in a positive direction. After trading concluded, the aviation regulator agreed to increases in fuel surcharges, effective 17-May-2010. For short haul services a USD2.50 surcharge will be added, and USD6.50 for long haul. EVA had last week issued a very strong Mar-2010 quarter result and announced a share issue.
Australian regional carrier, Skywest Airlines, whose stock tends to be volatile, showed the biggest fall on the day, losing 9.1%. Virgin Blue (-2.8%), also continued its decline after this week issuing a downbeat outlook and profit warning, joined by Qantas (-2.2%) as Australian markets slipped.
Indian LCC, SpiceJet, also shed 4.4% of value, continuing its downward track after losing 4.5% the previous day.
Asia Pacific selected airlines daily share price movements (% change): 05-May-2010