Fear pulls down airline shares

SHANGHAI: The outbreak of swine flu has led to a sharp decline in the share prices of domestic carriers, but is not likely to deal a major blow to the airlines' domestic business, experts said yesterday.

The pandemic has hit listed airlines hard. Air China dropped 2.71 percent to 6.1 yuan apiece, China Eastern pared its daily limit 5 percent to 4.55 yuan, China Southern tumbled 6.18 percent to 5.31 yuan, Hainan Airlines sank 3.93 percent to 5.13 yuan, and Shanghai Airlines plunged 4.77 percent to 4.59 yuan, nearly to its daily limit.

Fears over the virus are growing, and investors are starting to buy drug makers and sell airlines' shares.