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 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
Source: Centre for Asia Pacific Aviation, Reuters & Financial Times