Philippines Airlines shares hit hard; SIA increases fuel surcharges, March traffic highlights

Shares in Philippine Airlines dropped 12% in trading on Friday, although the shares have recovered 7.1% in early morning trading today. The PAL Employees Association (PALEA), warned earlier this month that its 3700 members may go on strike at any time, despite a certification order signed by Labour Secretary Rosalinda Baldoz barring a work stoppage. PAL is also seeking government approval for its plan to increase its fuel surcharges by up to 26% for select services.

Meanwhile, the Philippines Civil Aeronautics Board reported the following international passenger numbers for 2010:

Singapore Airlines will increase its fuel surcharges, effective 21-Apr-2011, the third increase for the carrier in 2011. The increase will be between USD4 and USD32 per sector. The price of jet fuel is now more than USD138 per barrel, the highest level in two years. 

SIA also reported the following traffic highlights in Mar-2011:

  • Passenger numbers: 1.4 million, -1.9%;
  • Passenger load factor: 73.2%, -7.6ppts;
    • East Asia: 76.2%, -5ppts;
    • Americas: 73.4%, -8.9ppts;
    • Europe: 73%, -11ppts;
    • South West Pacific: 71.5%, -9.2ppts;
    • West Asia and Africa: 70%, -2.4ppts;
  • Cargo volume: +1.6%;
  • Cargo load factor: 64.5%, -3.9ppts;
    • East Asia: 60.1%, -5.7ppts;
    • Americas: 63.8%, -5.7ppts;
    • Europe: 74%, -0.7ppts;
    • South West Pacific: 57.5%, -1ppts;
    • West Asia and Africa: 62.9%, -3.2ppts.

SIA shares finished the day 0.4% higher.

HNA Group Chairman, Chen Feng, forecast revenue would increase by around 50% year-on-year to as much as CNY150 billion (USD23 billion) in 2011, rising further to CNY500 billion (USD77 million) by 2015. HNA Group is the parent of Hainan Airlines. Hainan Airlines shares rose 1% on Friday.

China Airlines traffic highlights for Mar-2011:

  • Passenger traffic (RPKs): -7.9% year-on-year;
  • Passenger load factor: 78%, -3.6 ppts;
  • Passenger yield*: USD8.09 cents, +12.8%;
  • Cargo traffic (FTKs): -7.9%;
  • Cargo load factor: 70.5%, -3.3 ppts;
  • Cargo yield: USD29.48 cents, +8.2%.

* Based on the conversion rate USD1 = TWD29.035

Selected Asia-Pacific airline share price movements (% change): 15-Apr-2011