Asian airline stocks take off on signs travel is ready to come back after being grounded by the coronavirus
- This week, China Southern Airlines has surged 20.1 per cent in Hong Kong, while Cathay Pacific has shot up 13.2 per cent
- Travel group says bottom for air services was hit in April
Airline stocks in China and the rest of the Asia-Pacific region have broadly advanced this week, with some recording double-digit gains on signs air traffic is coming back as global economies reopen following worldwide steps to control the coronavirus pandemic.
In China, the aviation index tracked by Wind Information gained 7.6 per cent this week.
China Southern Airlines has surged the most among the four largest Chinese airlines, shooting up 20.1 per cent this week in Hong Kong and 8.1 per cent in Shanghai. China Eastern Airlines soared 17.6 per cent in Hong Kong and 8.2 per cent in Shanghai. Air China jumped 16.6 per cent in Hong Kong, while Hainan Airlines added 1.9 per cent in the mainland.
The gains came as the International Air Transport Association said earlier this week that demand for air services bottomed out in April, while daily flights surged 30 per cent between the April 21 low point and May 27.
China’s number of flights exceeds those of US airlines. Chinese airlines had the most flights in the world in May, thanks to a large domestic market with 244,400 flights. Air traffic for Chinese carriers is still down 39.4 per cent year over year, data from China-based aviation data VariFlight shows.