
Asian airline stocks are by far the best performing among their global peers this year. These airlines are racking up gains as most of the region reopens for travel. China even sticks to its Covid-Zero strategy, imposing lockdowns and limiting travel.
Airline stocks in Asia are the only gains in a Bloomberg indicator of global airlines. They are led by Cathay Pacific Airways Ltd., which has advanced 31% in 2022. While Cathay has long been hampered by Hong Kong’s Covid rules. It has recovered this year as the city loosens mandatory quarantine requirements at hotels.
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Taiwan’s Eva Airways Corp., Japan Airlines Co., and ANA Holdings Inc. are up more than 10% this year, while Australia’s Singapore Airlines Ltd. and Qantas Airways Ltd. have also advanced. The 29-member Bloomberg World Airlines Index is down 15%, with low-cost carrier EasyJet Plc at the bottom of the stack, down 34%.

“Asia is only at the forefront of its own ‘revenge trip’ period”. It is a trend that has already developed in the United States and Europe, Bloomberg Intelligence analyst Tim Bacchus said. The continent “has been the global laggard reopening.”
Airline stocks in Asia have advanced despite China maintaining strict Covid protocols ahead of a key Communist Party congress next month. Chengdu, the capital of Sichuan province, has extended a lockdown due to a few hundred infections. The reopening of travel to other parts of Asia is not the only factor driving airlines in the region. The Western world also has more concerns about inflation and recession, Bacchus said
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