News of fresh pilot trouble failed to dampen sentiment for Cathay Pacific Airways, whose shares tested a record high, aided by an expected drop in fuel prices and a number of earnings upgrades.
Cathay advanced to an intraday high of HK$16.80 but eased slightly to close at $16.65, a gain of 9.53 per cent on the day. The stock is up 15.22 per cent this week.
Saudi Arabia's promise to increase its oil supplies triggered share price leaps across the sector in Asia, with the least hedged airlines - Thai Airways International, Korean Air and Asiana Airlines - leading the gainers.
'Jet fuel prices is the only negative in the sector at this stage,' Goldman Sachs Asia airlines analyst Jean-Louis Morisot said. 'Now, that has been removed.' Cathay also benefited from a number of strong earnings upgrades including by brokerages Merrill Lynch and Indosuez WI Carr, which cited stronger than expected yields and passenger and cargo load factors.
Merrill upgraded earnings forecast for the year by 30 per cent and WI Carr by 12 per cent.
'Fuel-price sensitivity is much lower for Cathay than it used to be,' WI Carr analyst Niklas Olausson said.