TOKYO, Aug 12: Shares of Japan's two main airlines tumbled on Friday due to fears that an alleged bomb plot foiled in Britain will discourage air travel, which had been on the rebound, dealers said.

However, airline shares in most Asian countries stayed steady or rebounded from falls the previous day, in part because their markets were still in the midst of trade on Thursday when British authorities revealed the news.

In Tokyo, which heard of the bomb plot just before the close of trade on Thursday, dealers sold airline shares fearing a slip in passenger numbers will make it more difficult for carriers to cope with soaring fuel costs.

Japan Airlines, Asia's largest carrier, slid three yen or 1.43 per cent to close at 207 yen on the Tokyo Stock Exchange. Main competitor All Nippon Airways fell seven yen or 1.56 per cent to 442.

The losses were wider than the benchmark Nikkei-225 index which closed down 0.42 per cent, largely due to weaker than expected Japanese economic growth in the three months to June.

“On the back of Japan's economic recovery, there has been solid passenger demand. The business environment is good for the international flight industry.

But concerns arose that this kind of terrorism may dampen demand in the future,” said Satoru Aoyama, an analyst at Fitch Ratings.

“Amid higher fuelling costs, which would weigh on earnings, there is the possibility that airlines may not be able to absorb those costs if passenger demand falls,” he said.

“I don't think Japanese will immediately cancel their flights this summer.

But there is concern where the next target will be after London. International flights are vulnerable to those political uncertainties after 9/11,” he said.—AFP