Despite Chinese domestic airlines effort to add more flights throughout Asia to compete with foreign competitors, the stocks are still getting sold off.
“[China Southern Airlines] is due to receive its first double-deck A380 on Oct. 15, it said. The plane will be used on domestic flights from Oct. 17 to Oct. 29 before being moved onto international routes, it said. The carrier didn’t announce the overseas routes,” according to Bloomberg.
China Southern Airlines’s (NYSE:ZNH) stock is down 5.66% to $27.24 on the news. Shares are down 10.59% year to date. The stock has traded in a 52-week range between $19.80 and $39.30. China Eastern Airlines’s (NYSE:CEA) stock is down 3.59% to $18.80 on the news. Shares are down 26.04% year to date. The stock has traded in a 52-week range between $18.21 and $34.58. Shares of Cathay Pacific (CPCAY) are also down on the day. Air China (AIRYY) is the only one bucking the downward trend.
Don’t Miss: Here’s Why Airline Stocks are a Mixed Bag Now.