|Bid||27.90 x 2900|
|Ask||27.96 x 800|
|Day's Range||27.82 - 28.26|
|52 Week Range||27.00 - 52.34|
|Beta (5Y Monthly)||1.30|
|PE Ratio (TTM)||12.38|
|Forward Dividend & Yield||0.36 (1.22%)|
|Ex-Dividend Date||Jun 27, 2019|
|1y Target Est||183.08|
BEIJING/SHANGHAI, Feb 20 (Reuters) - Shares in affiliates of HNA Group surged on Thursday following a news report that China plans to take over the debt-laden conglomerate as the coronavirus outbreak has further hit its ability to meet financial obligations. HNA, which controls or holds stakes in a number of domestic carriers including its flagship Hainan Airlines, did not immediately respond to requests for comment on the report. China's aviation regulator said last week it would support restructuring or mergers to help airlines cope with the fallout of the epidemic, which has prompted carriers to cancel thousands of flights.
(Bloomberg Opinion) -- Even Willie Walsh admits that International Consolidated Airlines Group SA, where he’s the boss, is a “very boring name” for an airline group (IAG’s portfolio includes the more evocatively titled British Airways and Iberia).But should his successor ever wish to change it to something racier they’ll have to seek the blessing of Qatar Airways. On Wednesday the loss-making Gulf carrier said it had hiked its IAG stake from 21.4% to 25.1% in a move that will have cost about $600 million at current prices.Under British share ownership rules, an investor with 25% or more of the stock can block special resolutions, such as changes to the articles of association or to a company’s name. Unlike some airlines, IAG is focused on making money for its shareholders but it’s still a little baffling why the Qatar Airways boss, Akbar Al Baker, would pay all that money for such limited influence (his airline didn’t respond to questions seeking further clarification). Usually, the company’s approach is not to seek board seats.Qatar Airways is doubtless snaffling up stakes in rivals as a means of asserting soft power on behalf of its government, and enhancing its own global flight network — and it’s not alone in doing that. But the Gulf company is one of the most acquisitive carriers, and maybe that’s not a good thing given the mixed performance of airline stocks. In addition to its IAG shares, Qatar owns minority stakes in Latam, Cathay Pacific and China Southern Airlines. It also wants one in RwandAir. Financial considerations aside, Qatar certainly has more of a need to curry favor with international partners than a typical airline. In 2017, the state’s regional neighbors Saudi Arabia, Bahrain, Egypt and the United Arab Emirates imposed an air, sea and land blockade that remains in place. That threatens Doha’s status as an aviation hub.But Qatar Airways’ efforts to gain influence overseas by acquiring stakes in rival carriers haven’t always been welcome. Al Baker had to give up on buying a stake in American Airlines Group Inc. after the latter’s chief executive officer, Doug Parker, made clear the Qataris wouldn’t be welcome. U.S. airlines often accuse the Gulf carriers of unfair competition owing to state subsidies, which they deny.More recently, Lufthansa AG said Qatar Airways should rethink any idea of investing in the German flag carrier. “We did not have Lufthansa privatized in Germany to have it nationalized in Qatar," a spokesman told Reuters in December, sounding unusually frosty. In fairness, IAG has been one of Qatar Airways’ better investments. The stock has gained about 17% in British pound terms since the airline first acquired a 10% stake in 2015. Subsequent IAG share purchases have done better. With respect, though, few financial advisers would counsel their clients to make concentrated bets on airline stocks.Some of Qatar Airways’ other investments are instructive. Earlier this month Air Italy went into liquidation despite Qatar’s strong desire to keep it afloat. In the end its 49% shareholding counted for nothing. The 9.6% stake that Qatar purchased in Cathay Pacific Airways Ltd. in 2017 also appears to be underwater. The stake was acquired for HK$13.65 a share but the stock is now worth about HK$10.50 amid the protests in Hong Kong and the new coronavirus. Others have struggled too. Qatar’s Gulf rival Etihad Airways PJSC invested in Alitalia and Air Berlin Plc. Both went bust.Of course, Al Baker can invest his company’s capital however he wishes — he doesn’t have shareholders to answer to. But he may want to listen to someone who does. Walsh, who will step down at IAG in March, had this to say about the merits of shareholdings and alliances late last year: “Taking a minority stake without having some form of control, or some influence over what the airline is going to do, has no value whatsoever.”To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.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.
BEIJING/SYDNEY (Reuters) - Foreign pilots at some Chinese airlines have returned to their home countries and are considering other jobs after being placed on unpaid leave as demand falls because of the coronavirus, affected flight crew told Reuters. Meanwhile, Chinese pilots with greater job security said their income has been sharply reduced because most of their pay is based on flying hours. Data firm OAG estimates about 80% of scheduled airline capacity to, from and within China has been cut this week because of SARS-CoV-2, the virus that has killed more than 2,000 people.
Four more African countries have quarantined passengers arriving from China over suspected cases of Wuhan coronavirus even as tests ruled out infection in a person who was under medical observation in Ivory Coast.In Sudan, health minister Akram Ali Altoum announced that two of its citizens were being examined after displaying symptoms following a visit to Wuhan, the epicentre of the outbreak. "We received two suspected cases who came from China through Cairo and Addis Ababa," Altoum said, adding that infections had not been confirmed.The country does not have the necessary testing equipment and has sent samples to Germany and India, as recommended by the World Health Organisation, state-owned Sudan News Agency reported.The lack of equipped medical labs and kits has raised fears that many African nations may not have the capacity to detect and handle the virus.Altoum said Sudan had increased surveillance and screening at airports and borders, setting up seven checkpoints to monitor the movement of people entering the country. China is a major investor and trading partner in Sudan, with thousands of workers in the oil sector, including in South Sudan, where it has invested heavily in oil exploration and refining.Equatorial Guinea, a small central African nation, reported that it has quarantined four travellers who arrived on Tuesday via an Ethiopian Airline flight from Beijing to the capital Malabo. The country had announced that it would hold and isolate passengers from China for 14 days. It is not clear whether the four had coronavirus symptoms.On the small island of Mauritius, the health ministry said that all passengers that were travelling from Wuhan or had visited it in the last 14 days would be quarantined for observation, PanAfrican News Agency reported.Mauritian health and wellness minister Dr Kailesh Kumar Singh Jagutpal said on Tuesday that although the country has no confirmed cases, it has had nine symptomatic people under quarantine. Two of them have left for China and the others remain under observation.The country's national carrier, Air Mauritius has cancelled all its direct flights to and from Shanghai but said it has made alternative arrangements for passengers to travel to China via Hong Kong, Kuala Lumpur or Singapore."Air Mauritius is closely monitoring the situation and has intensified precautionary measures in line with the recommendations of local and international health authorities and according to its internal procedures," the airline said on Thursday.In Angola, which sells most of its oil to China, officials said a Chinese national who arrived in the country about 12 days ago has been hospitalised in Luanda after exhibiting symptoms, including high fever and a cough.There was relief in Ivory Coast after the announcement on Wednesday that a suspected coronavirus patient had tested negative.The West African nation had isolated a 34-year-old woman who had arrived at Felix-Houphouet-Boigny International Airport in Abidjan on a flight from Beijing on Saturday with a cough and breathing problems, the country's health ministry said.But tests by research institutes in Ivory Coast and France found that she did not have the virus, and she has been reunited with her family.China Southern Airlines crew members are screened after arriving at the international airport in Nairobi, Kenya, on Wednesday. Photo: EPA-EFE alt=China Southern Airlines crew members are screened after arriving at the international airport in Nairobi, Kenya, on Wednesday. Photo: EPA-EFEThe cases in Sudan, Angola and Equatorial Guinea came after Kenya and Ethiopia had also quarantined passengers arriving from China.Kenya has sent samples from a student who is in isolation at a Nairobi hospital to South Africa for testing, health officials said. He had travelled from Guangzhou after spending time in Wuhan and exhibited flu-like symptoms upon arrival via Kenya Airways on Tuesday.On Thursday, Kenya Airways said all passengers from Wuhan needed to be cleared by Guangzhou Airport health authorities before being allowed to board its aircraft.Four Ethiopian nationals were placed in quarantine this week after arriving at Addis Ababa's Bole International Airport from China. Three were students at universities near Wuhan, said Lia Tadesse, the state minister of health.South Africa, Nigeria, Ghana, Rwanda, Uganda and Zambia have all issued alerts and increased screening to prevent the spread of the disease.The death toll from the pneumonia-like virus reached 171 on Thursday, with more than 8,200 cases confirmed worldwide.Africa has become home to millions of Chinese businesspeople and workers since Beijing began an aggressive push into the continent in search of raw materials for its industries and markets for its products. Students and tourists also travel regularly between the two regions.African carriers including Kenya Airways, Ethiopian Airlines, Air Algerie, EgyptAir and South African Airways fly to China, and carriers including China Southern Airlines and Air China have routes to African cities.According to Dr John Nkengasong, director of the African Centre for Disease Control and Prevention, Africa is at high risk for the spread of the coronavirus because of the number of flights between China and the continent. He said air traffic between the regions had risen by more than 600 per cent in the past decade.He added that African countries needed to strengthen their public health surveillance and laboratory systems to better prevent, detect and control the spread of the virus.Sign up now for our 50% early bird offer from SCMP Research: China AI Report. The all new SCMP China AI Report gives you exclusive first-hand insights and analysis into the latest industry developments, and actionable and objective intelligence about China AI that you should be equipped with.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.Airlines across the globe suspended more flights to China as governments clamped down on travel to help stop the spread of the deadly Wuhan virus.British Airways halted daily routes to Beijing and Shanghai from London’s Heathrow airport, after U.K. officials advised against non-essential travel. The U.K. flag carrier, a unit of IAG SA, said it would reassess over the next few days. Hong Kong’s Cathay Pacific Airways Ltd. said it would cut capacity to China by 50% or more starting Thursday.Other European and North American airlines adjusted their schedules as well:Delta Air Lines Inc.: Cutting service to China in half to 21 flights a week, from Feb. 6 through April 30Deutsche Lufthansa AG: Suspending service to China until Feb. 9American Airlines Group Inc.: Suspending flights between Los Angeles and Shanghai and Beijing from Feb. 9 through March 27United Airlines Holdings Inc.: Reducing service to Beijing, Shanghai and Hong Kong.Air France-KLM’s Dutch unit: Suspending direct flights to Chengdu and Hangzhou as of Thursday, reducing number of weekly flights to Shanghai to seven from 11 times a week; Suspending direct flights to Xiamen as of Jan. 30Air Canada: Suspending flights to Beijing and Shanghai from Jan. 30 until Feb. 29IAG’s Iberia: Suspending flights to Shanghai from Friday through FebruaryThe changes come amid stepped-up efforts by authorities to stop the spread of the virus, which started in the Chinese city of Wuhan. With clusters cropping up in countries such as Germany, airlines placed other Chinese destinations off limits. Oil traders dumped contracts for jet fuel in anticipation of an extended slowdown.Almost 9% of flights scheduled to or from China were scrapped between Jan. 23 and Jan. 27, according to research from Cirium, which analyzes air travel.Virus Update: WHO to Mull Emergency Declaration as Toll Tops 130Government restrictions in China hit during the Lunar New Year holiday, when millions of people typically head home to see loved ones. Domestic travel in China fell 7.4% between Jan. 10 and Jan. 28, People’s Daily reported, citing the Ministry of Transport.Several South Korean carriers halted flights to Chinese cities, including Asiana Airlines Inc., Jeju Air Co. and Jin Air Co. Meanwhile, Finnair Oyj, Lion Air in Indonesia, Jetstar Airways’ Singapore operations and Air Macau Co. took similar steps.The number of confirmed cases in China soared to 5,974 -- overtaking the country’s official count of SARS patients -- while 132 people were reported to have died of the coronavirus.When SARS became a global epidemic, it hit the industry hard initially but the effect was fleeting, said Jozsef Varadi, chief executive officer of Wizz Air Holdings Plc.“It fell like a stone in the first month but then it started recovering and after four months everything went back to normal,” Varadi said on an earnings conference call Wednesday. “Probably this is going to be a better controlled issue so I wouldn’t expect the same impact as from SARS.”China Southern Airlines Co. could face the largest blow among the country’s “big three” carriers as it controls 30% of Wuhan’s seat capacity, with routes to and from the capital of Hubei province accounting for 3.6% of its seats, said Bloomberg Intelligence analysts James Teo and Chris Muckensturm. That compares with 1.5% for Air China Ltd., which is also vulnerable, the analysts wrote in a report.Wuhan’s airport, which was largely closed on Jan. 23, handles about 25 million passengers a year.Passenger traffic at airlines such as Cathay and China Southern plunged 32% to 37% in the first half of 2003 because of the SARS pandemic, Teo and Muckensturm added. This time, “international airports’ swift implementation of preventative measures can help blunt the impact,” they said.China Southern shares fell as much as 6.7% as trading resumed in Hong Kong following the Lunar New Year break, while Air China slid 5.5% and China Eastern Airlines Co. dropped as much as 7.7%.(Updates wiith Delta, Air Canada in bulleted list)\--With assistance from John Lauerman, Charlotte Ryan, Mary Schlangenstein, Joost Akkermans and Macarena Munoz.To contact the reporters on this story: Will Davies in Hong Kong at firstname.lastname@example.org;Kyunghee Park in Singapore at email@example.com;Siddharth Philip in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Anthony Palazzo at email@example.com, Tara PatelFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- There’s never a good time for the outbreak of a deadly virus, but this one is particularly bad. China’s Lunar New Year is often dubbed the world’s largest migration, a stretch of weeks when hundreds of millions of people visit their families. Before the pandemic started spreading, officials were expecting 3 billion airplane and train trips during the holiday rush between Jan. 10 and Feb. 18. Millions more have gone abroad.Little wonder, then, that the travel industry is suffering. With the death toll up to 25 and more than 800 infected, tourists are staying home. Some have no choice: The government has put seven cities on lockdown and airports are stepping up screening measures. On Friday, China ordered all travel agencies to suspend sales of domestic and international tours.Shares of China Southern Airlines Co. – the carrier most exposed to the site of the outbreak – have slid 14% since the second death from the virus was confirmed, while Cathay Pacific Airways Ltd., which said it would waive fees for tickets to and from the mainland, has slumped 7.6%. The country’s largest online travel agency, Trip.com Group Ltd. has tumbled 12%.If the SARS outbreak of 2003 is any guide, things could get even worse. In May of that year, Chinese air passenger traffic fell 71%, according to Goldman Sachs Group Inc. Bernstein Research cited concerns of a repeat outcome when it cut Trip.com’s rating one notch to “market perform” earlier this week. The Nasdaq-listed company, which changed its name from Ctrip.com last year, issued a statement Thursday saying it would refund travelers who’ve been diagnosed, or those in close touch with them.The hope is that, like SARS, the turbulence will eventually pass. For Trip.com, however, the business challenges are bigger than the coronavirus. In recent years, the company has struggled to keep up with competition from digital rivals like Meituan Dianping and Alibaba Group Holding Ltd.Few travel companies have benefited more from China’s transition to the world’s biggest source of tourists in 2012. Despite the trade war and Hong Kong’s protests,(3) China’s outbound tourism numbers have continued to rise. According to Euromonitor International, 108.39 million overseas trips were taken last year, a 9.5% gain, after surging 11.7% in 2018. Trip.com now makes up a quarter of its total sales from outbound Chinese visitors, from under 15% five years ago, reckons Bloomberg Intelligence analyst Vey-Sern Ling.But the hotel-booking sector is getting crowded. Meituan Dianping has recently overtaken Trip.com as China’s top site, just five years after the food-delivery giant started dabbling in the business. Meituan now has 47% of China's market, ahead of Trip.com, with 34%, according to TrustData. Now, Meituan is moving further into Trip.com’s territory with luxury hotels, while chains like Marriott International Inc. are pushing for direct booking on their China websites. Alibaba said part of the $13 billion it raised from its Hong Kong listing in November would go toward fliggy.com, its online travel group site.If there’s any lesson to be gleaned from all this, it’s the benefit of diversification. While China’s superapp business model has arched some eyebrows (how can one company possibly provide digital payments, taxis, food delivery, massages and pet grooming?) there’s a decent case to be made for having some crisis-proof subsidiaries. Consider AirAsia Group Bhd, Southeast Asia's most successful budget airline, which is setting up a regional fast food franchise.Plans could already be underway for Trip.com to diversify its investor base, with the company discussing plans to go public in Hong Kong, Bloomberg News reported earlier this month. Here, Alibaba is a successful model. With its second listing, the company is now closer to its Chinese end-users, and Alibaba’s New York-listed stock has soared 14%.The four-month span of the SARS outbreak shows how quickly things can turn around: While China’s growth dipped in the second quarter of 2003, it swiftly resumed in the following months. Given how much more important the Chinese shopper is to the economy now, the damage could be more painful. A 10% fall in discretionary transportation and entertainment could shave 1.2 percentage points from China’s growth domestic product, according to “back of the envelope” estimates by S&P Global Inc. Hong Kong retailers and restaurants, just coming off the pain of last year's protests, were already suffering. For those companies that enjoyed the fast-rising Chinese consumer, it may be time to devise a plan B. (Updates to include China’s measures to suspend travel-agency sales.)(1) Hong Kong, followed by Macau, are the top two destinations of mainland Chinese travelers.To contact the author of this story: Nisha Gopalan at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.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.
Airlines and passengers are on guard against a new flu-like virus that originated in Wuhan, China. The biggest concern is a sharp drop in travel demand if the virus becomes a pandemic. During the height of the SARS outbreak in April 2003, passenger demand in Asia plunged 45%, according to the International Air Transport Association (IATA).
The International Monetary Fund trimmed its outlook for global growth. And Davos—the global financial fete—is under way in Switzerland. But it is the coronavirus in Asia that has stocks moving.
The United Arab Emirates, a major international transit hub, has made sure its airports and ports are ready to handle coronavirus cases following an outbreak of a new virus in China, state news agency WAM reported. The virus, which appeared in the central Chinese city of Wuhan and can pass from person-to-person, has been reported in Thailand, Japan and South Korea, raising concerns about its spread through international air travel. The UAE's ministry of health has made sure all ports of entry were "on standby to handle coronavirus cases," WAM reported.
China is the world's largest market for new jets, and longtime Boeing customer Xiamen Airlines is looking at rival Airbus A321 jets
The "phase one" trade deal announced by the U.S. and China Friday saw many stocks jump, with investors breathing a sigh of relief as the U.S. pulled back on $160 billion in new tariffs that were ...
How do we determine whether China Southern Airlines Co Ltd (NYSE:ZNH) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but […]
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%.
China's top three airlines are bracing for a further margin squeeze as softer travel demand pressures passenger yields and a weakening yuan currency inflates costs, analysts said, as many of them slashed their annual profit forecasts for the carriers. The outlook revision - for which analysts also cited an economic slowdown amid a U.S.-China trade war and fears of rising oil prices - comes after China Southern Airlines, Air China and China Eastern Airlines turned in lower net profits for the January-June period last week, erasing first-quarter gains. China Southern, the country's largest carrier by passenger numbers, posted a 20.9% year-on-year drop in profit to 1.69 billion yuan ($238 million), while China Eastern posted a 14.9% drop to 1.94 billion yuan.
Airlines that have beaten market expectations and generated good balance sheet figures have not been cheered for Continue reading...