AICAF - Air China Limited

Other OTC - Other OTC Delayed Price. Currency in USD
0.8800
0.0000 (0.00%)
As of 1:02PM EST. Market open.
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Previous Close0.8800
Open0.8650
Bid0.0000 x 0
Ask0.0000 x 0
Day's Range0.8800 - 0.8800
52 Week Range0.8500 - 1.3200
Volume22,185
Avg. Volume1,183
Market Cap15.528B
Beta (5Y Monthly)2.19
PE Ratio (TTM)13.33
EPS (TTM)0.0660
Earnings DateN/A
Forward Dividend & Yield0.01 (1.70%)
Ex-Dividend DateJun 02, 2019
1y Target EstN/A
  • Airlines Aren’t About to Succumb to the Coronavirus
    Bloomberg

    Airlines Aren’t About to Succumb to the Coronavirus

    (Bloomberg Opinion) -- Airlines are perpetually on the alert against crashes. That doesn’t mean the coronavirus epidemic will lead to any corporate disasters.The outbreak that originated in the Chinese city of Wuhan could push some airlines in Asia to the wall, according to Alan Joyce, chief executive officer of Australia’s biggest carrier Qantas Airways Ltd. “A lot of airlines may not be able to keep some of these operations going,” he told Angus Whitley and Kyunghee Park of Bloomberg News. “It’s survival of the fittest.”Such an outcome would provoke some schadenfreude at Qantas, the best-performing full-service carrier in a Bloomberg index of Asia-Pacific airlines over the past year. At the same time, it’s hard to point to any major company that’s plausibly close to the edge. While the aviation industry is perpetually teetering on the edge of profitability, one of the main reasons is that so many carriers are controlled by indulgent shareholders who will go to extraordinary lengths to see their businesses through rough patches.The impact of the epidemic is likely to be sharp. In 2003, SARS caused Asia-Pacific carriers to lose $6 billion in revenue and 8% of their traffic, according to the International Air Transport Association.At the same time, it will probably be short, too. As we’ve written, coronaviruses are winter diseases that should be well and truly in retreat by late spring. Should control measures now being implemented prove effective, recovery could be under way even sooner. If SARS is any guide, that will trigger a surge of pent-up demand from leisure and business travelers.Then there’s the fact that people around the world don’t just decide to stop travelling because there’s a virus outbreak in China. Indeed, the more likely response in many countries will be to encourage tourists to stay closer to home. That may benefit airlines’ domestic aviation businesses, which tend to be more profitable than longer-haul international arms.China’s market has remained frustratingly closed. Right now, that may be a blessing. About two-thirds of the passenger traffic beginning or ending at Chinese airports is operated by mainland carriers or Hong Kong-based Cathay Pacific Airways Ltd. The remaining traffic with a Chinese leg represents only about 5.7% of the global market, so only the most China-exposed operators are likely to see a material shock.Some airlines are clearly more vulnerable than others. Thailand, a major destination for Chinese tourists, is home to four struggling carriers where fierce competition has driven passenger revenue below operating costs, causing the listed industry to lose about three-quarters of its market capitalization in the past three-and-a-half years.Still, while all four are failing to pay their interest expenses out of income and only Thai Airways International Pcl can boast positive free cash flow, other factors may support them.Bangkok Airways Pcl was founded and is controlled by Prasert Prasarttong-Osoth, who may do quite well over the next few months since his fortune is based on operating private hospitals. Nok Airlines Pcl has a similar relationship with the Jurangkool auto-parts dynasty, and had already been acquiring fresh loans and capital infusions to keep its planes in the air. Thai Airways, which quashed speculation of imminent bankruptcy last year, is majority-owned by the government, while Asia Aviation Pcl is the local arm of the AirAsia Bhd empire, so should be able to count on similar support from head office.There’s no shortage of forgiving shareholders among cash-strapped airlines elsewhere in the region. PT Garuda Indonesia is, like Thai Airways, controlled by the government; PAL Holdings Inc. by Philippines billionaire Lucio Tan. Asiana Airlines Inc. and Virgin Australia Holdings Ltd. have been struggling for years, but the former was bailed out by a consortium of local investors in December while the latter has a long history of being supported by offshore airlines interested in keeping Qantas on the backfoot in its home market.It’s a similar picture in China itself, which will take the brunt of the impact. Only Air China Ltd. has been consistently racking up positive free cash flow of late, but every major listed carrier has ample interest coverage so shouldn’t be fearing imminent talks with creditors.Those that are state-owned enterprises will be able to count on the state standing behind them; Hainan Airlines Holding Co., which isn’t exactly, is already being looked after as part of the multi-year workout of the buying spree that its controlling shareholder HNA Group Co. went on in the middle part of the last decade.Cathay, for its part, has endured an annus horribilis but has for generations been a favorite child of its largest shareholder Swire Pacific Ltd. Like Virgin Australia, it has enough deep-pocketed owners to see it through a rough patch.That doesn’t mean that the region’s airlines won’t struggle over the months ahead. Still, the dream scenario for Qantas — where competitors go under and take some capacity out of Asia’s fiercely competitive market — may remain just that: a dream.To contact the author of this story: David Fickling at dfickling@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Barrons.com

    What Coronavirus Means for Chinese Stocks

    The coronavirus brought back flashbacks of the SARS outbreak in 2003 that rattled Asian markets and economies.

  • Chinese airlines turn to Asia as long-haul losses pile up
    Reuters

    Chinese airlines turn to Asia as long-haul losses pile up

    BENGALURU/BEIJING - Chinese airlines are adding seats on short- and mid-range Asian flights in a strategic shift away from prestigious but loss-making North American routes to a market that promises better returns and growth. Over the past decade, the number of seats on U.S. routes operated by China's top three state-owned carriers rose fourfold, but such breakneck expansion came at a price. The nation's international aviation industry has been in the red for at least three years, with losses reaching 21.9 billion yuan ($3.13 billion) in 2018, according to recent China Air Transport Association data.

  • Reuters

    Chinese airlines hit by slides in demand on routes to Hong Kong, Taiwan

    China's three biggest airlines saw double-digit declines in demand on their so-called regional routes in September, as protests in Hong Kong and Beijing's travel restrictions to Taiwan took their toll. Two of them, China Southern Airlines and China Eastern Airlines have also aggressively cut capacity on those routes to Hong Kong, Macau and Taiwan - routes which account for about 5% of their revenue. China Eastern said demand on its regional routes, as measured by revenue passenger kilometres, tumbled by nearly a quarter in September from the same period a year earlier, while China Southern slid 21.1% and Air China fell 15.7%.

  • Air China has no plans to take over Cathay Pacific: media report
    Reuters

    Air China has no plans to take over Cathay Pacific: media report

    Air China Ltd has no plans to take over Hong Kong's Cathay Pacific Airways Ltd , an independent director of the state-owned Chinese carrier told the South China Morning Post newspaper. "Based on what I know, I wouldn't think that is anywhere on the agenda, no way," Air China non-executive director Stanley Hui told the newspaper when asked if the carrier, a 30% shareholder, might seek to buy Cathay outright. The Hong Kong airline has become the biggest corporate casualty of anti-government protests after China demanded it suspend staff involved in, or who support, demonstrations that have plunged the former British colony into a political crisis.

  • Air China to suspend Beijing-Hawaii flights amid weak travel demand
    Reuters

    Air China to suspend Beijing-Hawaii flights amid weak travel demand

    BEIJING/SHANGHAI (Reuters) - Air China will suspend its flights on the Beijing-Hawaii route from Aug. 27 after a review of its network, China's flagship carrier said on Tuesday, as travel demand remains weak amid an escalating U.S.-China trade war. Passengers who have purchased tickets for travel after that date will receive a full refund, Air China said in a statement on its website. The passenger load factor - an industry metric that measures how much of an airline's passenger carrying capacity is used - for Air China's thrice-weekly Beijing-Honolulu route averaged 66.37% last year, according to Chinese aviation data provider Variflight.

  • Reuters

    UPDATE 2-Air China to suspend Beijing-Hawaii route flights from Aug 27

    Air China will suspend its flights on the Beijing-Hawaii route from Aug. 27 after a review of its network, China's flagship carrier said on Tuesday, as travel demand remains weak amid an escalating U.S.-China trade war. Passengers who have purchased tickets for travel after that date will receive a full refund, Air China said in a statement on its website.

  • Air China to buy 20 A350-900 wide-body aircraft from Airbus
    Reuters

    Air China to buy 20 A350-900 wide-body aircraft from Airbus

    BEIJING/PARIS (Reuters) - Air China Ltd , China's flagship carrier, will buy 20 A350-900 jets from Airbus SE , both companies said, bolstering the European planemaker's order book for wide-body jets against Boeing Co amid Sino-U.S. trade tensions. Air China on Thursday said the order is worth $6.54 billion, based on list prices, and that deliveries were scheduled from 2020 through 2022. Airbus, in a statement to Reuters, confirmed the order was new.

  • 3 Chinese airlines seeking Boeing compensation over 737 Max
    Associated Press

    3 Chinese airlines seeking Boeing compensation over 737 Max

    BEIJING (AP) — China is stepping up pressure on Boeing Co. as its airlines demand compensation for the grounding of 737 Max jetliners after fatal crashes in Ethiopia and Indonesia.

  • Reuters

    China's big three airlines seek Boeing compensation over 737 MAX grounding

    China's three biggest airlines have asked U.S. planemaker Boeing Co to compensate them for losses caused by the grounding and delayed deliveries of 737 MAX jets, just as regulators gather to discuss design changes for the troubled aircraft. The triple compensation requests come at a sensitive time in Sino-U.S. relations, with a string of tit-for-tat import tariffs culminating in Washington accusing Beijing of backtracking on almost all aspects of a proposed trade deal. The U.S. administration's latest tariff increase on $200 billion (158 billion pounds) worth of Chinese imports - and hints of more - has prompted fear that China could retaliate against U.S. companies.

  • Reuters

    Air China asks Boeing for compensation over 737 MAX grounding - state TV

    Air China has formally asked Boeing Co for compensation over the grounding of its 737 MAX aircraft and delayed deliveries of its orders, the state TV China Central Television reported on Wednesday. On ...

  • Reuters

    BRIEF-Air China's Net Profit Up 3.6 Pct Y/Y In Q1

    April 25 (Reuters) - Air China Ltd: * SAYS Q1 NET PROFIT UP 3.6 PERCENT Y/Y Source text in Chinese: http://bit.ly/2IVg7Ns Further company coverage: (Reporting by Hong Kong newsroom)

  • Reuters

    Air China to fly Shanghai-London route as Beijing eases restrictions

    Air China on Wednesday received approval to launch a long-haul route from Shanghai to London, and permit the carrier to compete with China Eastern Airlines, as Beijing eased a decade-old "one route, one airline" policy. Previously, Shanghai-headquartered China Eastern Airlines was the only Chinese carrier on the route. China's aviation regulator said last year it would ease the policy which had been in place since 2009.

  • Reuters

    BRIEF-Air China Says 2018 Net Profit Up 1.3 Percent Y/Y

    March 27 (Reuters) - Air China Ltd: * SAYS 2018 NET PROFIT UP 1.3 PERCENT Y/Y Source text in Chinese: https://bit.ly/2JICMyF Further company coverage: (Reporting by Hong Kong newsroom)