China Southern Slumps After Airport Fees Raised: Hong Kong Mover
Feb. 5 (Bloomberg) -- China Southern Airlines Co., the nation’s biggest carrier by passengers, fell the most in almost eight months in Hong Kong trading, leading declines among Chinese airlines, after local airports announced fee increases.
China Southern, based in Guangzhou, dropped 4.3 percent to HK$4.48 at the close in Hong Kong, the biggest fall since June 8. The city’s benchmark Hang Seng Index fell 2.3 percent.
Beijing Capital International Airport Co., the world’s second busiest airport by passengers, said regulators will allow it to charge domestic carriers’ international flights the same fees as foreign carriers effective April 1. The increased charge, which also applies to domestic flights that connect to international flights, will help boost revenue, the airport said in a statement yesterday.
Chinese carriers pay about 40 percent less than their foreign rivals for international flights to China’s airports, Barclays Plc analysts led by Patrick Xu wrote in a note to clients yesterday. Airports in Shanghai, Guangzhou and the Hainan province announced fee increases after receiving the notice.
Air China Ltd., the nation’s biggest carrier by market value, fell 3.1 percent to HK$6.59. China Eastern Airlines Corp., a Shanghai-based carrier, dropped 3.1 percent to HK$3.49.
Beijing Capital International Airport fell 0.2 percent to HK$6.61.
--Editors: Aaron Clark, Subramaniam Sharma