SpiceJet jumps, Singapore Airlines and Qantas stable, Cathay Pacific down, Jet Airways slips

Asian airline shares were mixed yesterday (18-Jun-09), reflected most clearly in India, where Jet Airways' 6.0% share price reduction contrasted with SpiceJet’s 5.8% increase. While the market reacted positively to SpiceJet increasing its fuel surcharge by USD8.36 (INR400) on all domestic tickets purchased from 18-Jun-09, the sentiment was different for Jet Airways, which, along with Kingfisher Airlines, also announced moves to raise fares/surcharges in response to sharply higher jet fuel prices. GoAir, IndiGo and Paramount Airways are considering plans to increase fuel surcharges.

Jet Airways also announced that, by the end of Jun-2009, 38% of its 290 daily services would be operated by its new all-Economy class unit, Jet Konnect. The Jet Airways Group already operates 109 all-Economy daily services through JetLite, increasing its daily Economy offering up to 219 from 399 services operated by the Group.

Elsewhere, shares in Qantas remained unchanged, Singapore Airlines saw a slight 0.2% increase, while Cathay Pacific dropped back 1.7%.

Hainan Airlines had the most improved share price among the Chinese carriers on 18-Jun-09, with a 0.9% increase, followed by Air China (+0.3%), while China Southern saw a reduction of 2.0%. Mainland Chinese carriers have reported solid increases in demand in May-2009, with Hainan Airlines reporting the highest traffic (RPK) performance in the month among the major carriers, while Cathay Pacific's traffic continues to deteriorate.

Asia Pacific selected airlines daily share price movements (% change): 18-Jun-09