|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||9.28 - 9.40|
|52 Week Range||8.58 - 13.15|
|Beta (5Y Monthly)||0.86|
|PE Ratio (TTM)||4.00|
|Forward Dividend & Yield||0.34 (3.65%)|
|Ex-Dividend Date||Sep 02, 2019|
|1y Target Est||10.32|
(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 firstname.lastname@example.orgTo contact the editor responsible for this story: Matthew Brooker at email@example.comThis 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.
Hong Kong leader Carrie Lam sought on Tuesday to convince global business and political leaders at the World Economic Forum in Davos that the Asian financial hub is open for business. Hong Kong's status has come under scrutiny as seven months of sometimes violent demonstrations paralysed parts of the city and forced businesses to close, posing the gravest popular challenge to Chinese President Xi Jinping since he took power in 2012. Lam and "Team HK", including its trade secretary, top officials from the stock exchange, airport authority, MTR Corp and the head of Swire Group, are in the Swiss mountain resort after Moody's this week downgraded Hong Kong.
For Hong Kong leader Carrie Lam the World Economic Forum in Davos is a chance to convince global business and political leaders that the Asian financial hub is back on track. After more than seven months of turmoil Hong Kong's status as a financial centre has come under scrutiny as sometimes violent demonstrations paralysed parts of the city and forced businesses to close, posing the gravest popular challenge to Chinese President Xi Jinping since he took power in 2012. Lam and "Team HK", including its trade secretary, top officials from the stock exchange, airport authority, MTR Corp and the head of Swire Group, are in the Swiss mountain resort two days after another violent clash and more are planned for the weekend of her return.
Swire Pacific , parent of airline Cathay Pacific , finds itself under pressure from Beijing these days. The company's subsidiary Swire Coca-Cola is one of the world's largest bottlers, with the license to bottle Coke's 58 beverage brands in much of the western United States, 11 Chinese provinces, Hong Kong and Taiwan. It's now testing a much-needed plastic-waste program in Hong Kong, one of the world's most-wasteful cities.
Qatar Airways has full confidence in Cathay Pacific Airways Ltd and will increase its 10% stake in the Hong Kong carrier if it has any opportunity to do so, the Qatari airline's chief executive said on Tuesday. Cathay has become the biggest corporate casualty of political unrest in Hong Kong after China demanded it suspend staff involved in, or who support, anti-government demonstrations.
Hong Kong is gearing up for further protests this week after hundreds of thousands of anti-government demonstrators braved heavy rain to rally peacefully on Sunday, marking a change to what have often been violent clashes. Sunday's massive turnout, which organisers put at 1.7 million, showed that the movement still has widespread support despite chaotic scenes last week when protesters occupied the Chinese-ruled city's airport. Some activists had apologised for the airport turmoil and on Sunday night protesters could be seen urging others to go home peacefully.
China said on Wednesday Hong Kong's protest movement had reached "near terrorism" and more street clashes followed ugly scenes the previous day when protesters set upon men they suspected of being government sympathisers. The United States said it was "deeply concerned" at news of Chinese paramilitary police movement near the border, urged Hong Kong's government to respect freedom of speech, and issued a travel advisory urging caution when visiting the city. By nightfall, police and protesters were again facing off on the streets, with riot officers shooting tear gas almost immediately as their response to demonstrators toughens.
SINGAPORE/HONG KONG (Reuters) - The top shareholder and manager of Cathay Pacific Airways condemned protests in Hong Kong and vowed to follow China's aviation regulations, after the airline suspended a second pilot on Tuesday as deepening unrest hit its operation and stock. Cathay, whose strong British links make it a symbol of Hong Kong's colonial past, has emerged as the highest-profile corporate target as Beijing looks to quell protests in the territory that have gone on for ten straight weeks. Shares in the Hong Kong flag carrier sunk to a 10-year low, hit by concerns that Beijing could slap further sanctions on the airline, causing more damage to its brand.
HONG KONG/BEIJING, Aug 9 (Reuters) - China's aviation regulator on Friday demanded Hong Kong flag carrier Cathay Pacific Airways suspend personnel who have engaged in illegal protests in the city from staffing flights into its airspace from August 10. Hong Kong has been embroiled in increasingly violent anti-government street protests for the past two months, which a top Chinese official described this week as the greatest crisis since its return from British to Chinese rule in 1997.
Conglomerate Swire Pacific became the latest major Hong Kong company to voice concern about the impact of protests in the city on business activity, saying they are having direct and indirect impact on demand on a number of its businesses. The comments by Swire, whose business spans retail to property to airlines, come after similar concerns raised by Cathay Pacific Airways Ltd and Hongkong and Shanghai Hotels's on Wednesday. Swire owns 45% of Cathay Pacific, Refinitiv data shows.
With capacity expansion outpacing traffic growth, Alaska Air Group's (ALK) load factor slips in March. However, the company's Q1 view pertaining to unit revenues and costs are encouraging.
American Airlines (AAL) trims its Q1 TRASM view on numerous flight cancellations due to the MAX 8 groundings and removal of 14 737-800 aircraft from service as well as the government shutdown.
With capacity expansion outpacing traffic growth, Hawaiian Holdings (HA) arm Hawaiian Airlines' load factor falls in March. Additionally, the carrier revises Q1 unit revenue and cost outlook.