Qatar Crisis to Boost Lagging Emerging-Market Airline Stock
- Air Arabia may benefit from higher revenues in Saudi Arabia
- Stock has tumbled most among emerging-market peers in 2017
Construction cranes are seen on the city skyline in the Oneiza and West Bay district, seen from the Al Corniche promenade in Doha, Qatar, on Saturday, March 17, 2012. The country, the biggest exporter of liquefied natural gas, was the world's fastest-growing economy for the past two years, International Monetary Fund data showed.
Photographer: Gabriela Maj/BloombergThe troubles of a local rival may bring respite to Air Arabia PJSC, the worst-performing stock among major emerging-market airlines this year.
While the United Arab Emirates’ only listed carrier has tumbled 20 percent in 2017, things look more favorable in the second half of the year, analysts say. The company could attract more travelers on routes that overlap with Qatar Airways, which has been banned from flying into or over countries including Saudi Arabia and the U.A.E after they severed commercial ties with their neighbor last month.