Singapore Stock Market News

Airline roadshow ' pushbacks and counterpoints

StockFanatic
Publish date: Wed, 29 Aug 2012, 11:04 AM
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Our recent roadshow across Asia revealed that legacy carriers remain out of favour. While low-cost carriers (LCCs) are a safe haven, investors are already paying a premium for this growth. With network carriers trading at 1x P/BV, we see some long-term value in the sector.

We continue to Overweight the sector, with share prices potentially driven by rising load factors, aiding cost control and allowing yields to rise. Our top picks are Cathay, Korean Air and China Eastern.
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