SHARES in Shanghai International Airport tumbled yesterday after the company forecast a big loss in income caused by a cut in landing fees for aircraft.
"The company is estimated to lose 10 percent of its total income after the new structure took effect on March 1," the operator of the city's two civil airports told the Shanghai Stock Exchange yesterday.
It said that its total income last year rose six percent to 3.14 billion yuan (US$441.88 million). Its share price plunged by the daily limit of 10 percent to 26.70 yuan (US$3.75) in Shanghai, while the Shanghai Composite Index lost 2.3 percent to 4,070.12.
China's aviation watchdog imposed the new fees to eliminate the payment gap between foreign carriers and Chinese carriers within five years.
The scheme cut landing and take-off fees for foreign airlines by 40 percent and domestic airlines by 20 percent. Before March, foreign carriers paid about two or three times the fees of domestic counterparts.
"The more international flights an airport operates, the stronger impact it will receive in the reforms," said Li Lei, an analyst at China Securities Co.
Shanghai handles 33 percent of international routes in China, while Beijing Capital International Airport ranks second with 15 percent.