Asian Airlines

Asian Airlines: UBS reviews sector following earthquake. Note that airlines suffered little impact. Expect several weeks of impact only on leisure travel from Japan, whereas business travel shall not be affected. Estimate Korean and Asiana Airlines have respectively 15% and 13% of seat capacity deployed to Japanese routes. SIA and Cathay have 6-7% capacity on Japan, but focus on unaffected business travel segment. Jet fuel price remains the dominating issue.