Cathay Gains as IPhone Record Sales Boost Cargo: Hong Kong Mover
Cathay Pacific Airways Ltd. (293), whose cargo unit moves Apple Inc. (AAPL) products, jumped the most in more than five months in Hong Kong on speculation record sales of new iPhones will help boost freight volumes at the carrier.
“Cathay may benefit from the upbeat sales numbers from Apple’s new phones as it provides freight transport service to Apple’s suppliers in China,” Patrick Xu, a Hong Kong-based analyst with Barclays Plc., said in an e-mail. Cathay’s freight volume increased 1 percent in August from a year earlier, the first monthly gain since February, he said.
Apple sold a record 9 million iPhones in the weekend debut of two new models, as the company included China in the rollout and offered more colorful options. Cathay and other Asian carriers, suffering from a traffic slump of six straight months, are banking on demand for new gadgets to boost cargo volumes as transporting electronics is their biggest business.
Cathay declined to comment on the share increase. The airline welcomes the introduction of high-technology products because their delivery is time sensitive, giving shipping by air an advantage over by sea, it said in an e-mailed response to questions from Bloomberg News.
Apple has helped the air cargo industry in the past too. When the iPhone 5 went on sale in September last year, the decline in monthly freight traffic in the Asia-Pacific region shrank to 2.6 percent, easing from a 6.3 percent drop in the previous month.
Korean Air Lines Co. (003490), which moves Samsung Electronics Co.’s phones and other high-tech products, jumped 4 percent in Seoul trading.
Declining fuel prices may also be a reason for the gain in Cathay shares, according to Credit Suisse Group AG analyst Timothy Ross. West Texas Intermediate crude traded near the lowest price in more than six weeks.
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