Hainan Airlines Co. Ltd. (600221), China’s
fourth-biggest carrier, surged the most in more than two years
in Shanghai trading, leading gains among Chinese carriers amid
signs faster economic growth is boosting travel demand.
Hainan Air jumped by its 10 percent exchange-imposed limit
to 4.52 yuan for the biggest gain since November 2010 in
Shanghai. Bigger rival China Southern Airlines Co. (600029) surged 4.7
percent to 3.81 yuan as of 1:56 p.m. in Shanghai.
Passenger revenue, or flyers multiplied by kilometers, rose
29 percent last month because of higher demand during the week-
long Chinese New Year holiday, China Eastern Airlines Corp. (670) said
in a statement earlier this week. Air China Ltd. (601111), the nation’s
biggest carrier by market value, and China Southern (1055) are likely
to post similar results for last month, said Zhou Meng, an
analyst at Shenyin & Wanguo Securities Co.
“The industry’s outlook is also expected to improve in the
upcoming peak season in the second quarter,” Zhou, who is based
in Shanghai, said in a phone interview today.
Economists surveyed by Bloomberg News forecast China’s
economic growth to accelerate to 8.1 percent this year, based on
the median estimate. The world’s second-biggest economy grew 7.8
percent last year.
Air China (753) gained 5.8 percent to 5.64 yuan. The airline
stocks helped push the benchmark Shanghai Stock Exchange
Composite Index up 1.7 percent.
The Hong Kong-traded shares of Air China gained 2.1 percent
while those of China Southern climbed 5.1 percent and China
Eastern’s advanced 3.7 percent.
Hainan Air yesterday said it would give investors 10 bonus
shares for every 10 held. The carrier also reported profit that
was in line with analyst estimates.
Investors tend to consider the issuance of bonus shares as
a buying opportunity, Zhou of Shenyin & Wanguo said.
Separately, Li Jiaxiang, head of China’s aviation regulator
told Shanghai Securities News that China should invest to build
more airports and jet fuel prices will become more market
To contact the reporter on this story:
Jasmine Wang in Hong Kong at
To contact the editor responsible for this story:
Anand Krishnamoorthy at
Hainan Leads Airline Gains on Peak Travel Demand: Shanghai Mover – Bloomberg