Qantas Group yields and pax levels improve; load factors weaken

Qantas reported that total domestic (Qantas, QantasLink and Jetstar Domestic operations) yield excluding foreign exchange for the financial year to Oct-2010 increased 0.6% year-on-year. Total International (Qantas and Jetstar International operations) yield excluding foreign exchange for the four months to Oct-2010 increased 14.2%.

Passenger numbers increased 8.8% to 4.0 million with load factors averaging 82.5%, a 0.8 ppt decline. Shares in the carrier closed down 1.1% yesterday ahead of the release of the traffic data today with the carrier’s shares weaker in morning trading today.

Skymark shares strengthen

Shares in Skymark Airlines strengthened 6.6% on 30-Nov-2010. During the month, the Japanese LCC announced plans to shake-up the Japanese market with plans to introduce A380 equipment. Its A380s will feature a record-low 394-seats, comprising only business and premium economy classes, and will fly to London.

Thai Airways developing plan to end state control

Shares in Thai Airways gained strongly again yesterday, with growth of 6.3% following the previous day’s 7.3% gain. Late last week, Thai Airways President Piyasvasti Amranand stated the carrier is developing a plan to end state control.

The carrier is in talks with local and foreign creditors to remove debt covenants, which will allow Thailand’s Ministry of Finance to reduce its stake in the carrier from 51% to 49.9%. State Enterprise Policy Office Director General Somchai Sujjapongse stated the ministry is “ready to consider that”, as the carrier “will be more flexible and better able to compete with the private sector” if it is not a state enterprise.

Elsewhere, shares in Hainan Airlines declined 5.8% with Shandong Airlines shares also weaker, by 3.6%.

Asia Pacific selected airlines daily share price movements (% change):  30-Nov-2010