28-Jul-2010 12:07 PM

SpiceJet orders 30 more B737s, Jet Airways rises in earnings afterglow. Korean airline stocks ease

Indian low cost carrier SpiceJet has placed an order for 30 new B737-800s at a list cost of USD2.7 billion for delivery between 2014 and 2018.

SpiceJet will add seven aircraft this year and plans to induct a similar number or slightly more by the end of the next financial year, to operate 50 aircraft by 2014 (the same number as AirAsia’s Malaysian operation at present – see related report: AirAsia load factors rise, Jetstar expands long-haul, Tiger’s ‘vertical seating’ and Virgin’s middle

SpiceJet’s first quarter net income surged 110% to USD11.8 million for the three months to 30-Jun-2010. Director, Ajay Singh, stated the outlook for the next few quarters looks good, stating: “We are looking to take a disproportionate share of growth in the aviation market”. Acting CEO, Kishore Gupta, commented: "We expect domestic demand to grow at 16% during the current year and to sustain a 12-14% annual growth going forward in the medium term".

SpiceJet's shares gained 0.3% yesterday. Kingfisher also gained 0.3%.

Jet Airways’ shares rallied 4% yesterday as investors digested the carrier’s first quarter earnings and positive outlook. See related report: Jet Airways returns first quarter bottom line to profit

Korean Air lower, SIA gains

Elsewhere, Korean stocks closed marginally lower yesterday, with Korean Air falling 0.6% to KRW78,000 and Asiana Airlines slumping 2.9% to KRW9,360 on profit taking after recent rallies.

Thai stocks hit 26-month highs yesterday, although Thai Airways was flat, while Singapore Airlines rose 1.8% after it reported a better-than-expected first quarter net profit and analysts upgraded its target price. See related report: Singapore Airlines returns to profit in first quarter; expecting recovery to continue

Asia Pacific selected airlines daily share price movements (% change): 27-Jul-2010