Bloomberg News

China Southern Gains Most in 8 Weeks as A380s May Fly Abroad

March 30, 2012

China Southern Airlines Co. (ZNH:US) climbed the most in New York in eight weeks as Asia’s biggest airline by passenger numbers said it expects to fly its Airbus SAS A380s internationally this year after overcoming regulatory delays.

The American depositary receipts of the Guangzhou, China- based carrier, the country’s only operator of A380s, surged 5 percent, the most since Feb. 3, to $23.63 at the close of trading in New York. The ADRs, each representing 50 common shares, have declined 7.2 percent this quarter. China Southern’s shares gained 3.3 percent today to HK$3.71 in Hong Kong, the equivalent of 50 U.S. cents, for a quarterly decline of 5.6 percent.

China Southern Chairman Si Xianmin told reporters in Hong Kong today that the airline, the country’s biggest for domestic services, will fly the A380 internationally this year. The carrier plans to fly the planes to the U.S. and Europe, he said. The airline, which has three A380s, will receive a fourth in September followed by the fifth and final one early next year, Si said.

The carrier expects to receive a total of 57 new planes this year, including its first Boeing Co. 787 in the third quarter, as it expands international services amid slowing domestic travel growth.

To contact the reporter on this story: Leon Lazaroff in New York llazaroff@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at Eobrien6@bloomberg.net


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Companies Mentioned

  • ZNH
    (China Southern Airlines Co Ltd)
    • $17.1 USD
    • -0.20
    • -1.17%
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