Oct. 28, 2009 (Xinhua News Agency) -- Chinese airline stocks outperform market upon better-than-expected Q3 performance
BEIJING, Oct.28 (Xinhua) ?The major Chinese airline stocks outperformed the market Wednesday upon the better-than-expected business performance in the third quarter.
The A-share of the three airline giants China Southern Airlines (NYSE:ZNH) (ZNH.NYSE; 01055.HK; 600029.SH), China Eastern Airlines (CEA.NYSE; 00670.HK; 600115.SH) and Air China (00753.HK; 601111.SH) Wednesday gained 1.70 percent, 0.71 percent and 1.55 percent, respectively, outperforming the 0.33 percent growth of the benchmark Shanghai Composite Index.
Analysts pointed out that the better-than-expected performance of the airlines in the third quarter stimulated their share price Tuesday.
The jet fuel hedging businesses and the booming traveling season in the third quarter contributed to the profit of the airlines in the period. But as the fourth quarter is a traditional low season for the aviation industry, the air ticket price will see a drop then, which will drag down the main operating businesses of the airlines in the period.
Besides, airlines still face the pressure of high oil price in the future. The strong trend for the airline stocks is expected not to last. But the expectation on the appreciation of the Chinese currency is likely to bring opportunities to the airline stocks.
