Tiger Airways shares slump most since IPO; Increased international traffic to South Korea


Tiger Airways suffered its largest share price slump since its was floated seven months ago, falling 7.6% on Friday as the carrier's earnings in the three months ended Jun-2010 failed to meet investor expectations. The carrier' shares have risen 40% since its IPO in Jan-2010.

  • Tiger Airways experiences significant share price slump after failing to meet investor expectations in Q2-2010.
  • Tiger Airways CEO declines to comment on the Australian business's financial performance.
  • Macquarie Equities downgrades Tiger Airways stock from "outperform" to "neutral."
  • Asiana Airlines and Korean Air report increased international traffic levels in July 2010.
  • Asiana Airlines sees a 16.5% increase in international passenger numbers, while Korean Air reports a 10% increase.
  • Hainan Airlines, China Eastern, and China Southern also experience positive share price movements in North Asia.

Tiger Airways CEO, Tony Davis, declined to comment on whether the Australian business broke even in the quarter stating: ''There is no benefit to me or my shareholders in giving our competitors the detailed breakdown of our businesses''. He commented however that its performance had improved on a year-on-year basis.

Macquarie Equities has downgraded the stock from ''outperform'' to ''neutral''.

See related article: Tiger Airways 1Q2011 operating profit sees the LCC well under way to becoming a regional force

Asiana and Korean Air seeing improved international traffic levels

In the South Korean market, shares in Korean Air gained 3.0%, while Asiana Airlines was 0.6% stronger on Friday, as both carriers reported increased international traffic in Jul-2010.

Asiana reported a 16.5% increase in international passenger numbers, to 904,000, with a 10% increase for Korean Air, to 1.3 million passengers in the month. Levels are expected to be stronger in Aug-2010, with anticipated international passenger numbers of 960,000 and 1.4 million, respectively.

See CAPA Hot Issues page on Traffic & Capacity.

Also in North Asia, Hainan Airlines' shares surged 6.3%, while China Eastern and China Southern were also stronger (+1.6% and 0.5%).

Asia Pacific selected airlines daily share price movements (% change): 06-Aug-2010

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