LCC stocks mostly fell on Friday, dragged down by declines across wider equity markets. Air Berlin, 1time Holdings, Vueling and Norwegian led LCC shares down. Asia Pacific LCCs Virgin Blue, AirAsia and Tiger Airways were notable gainers. Dart Group, parent of Jet2.com, also closed higher.
News of Virgin Blue’s attack on Qantas’ share of the corporate market continues to make news in the Australian business community. Virgin Blue pared Thursday’s fall to close up 3.5%. The ASX200 also gained on Friday.
See related report: Virgin Blue implements ‘game change programme’; Qantas #1 target
Shares in AirAsia advance; reports strong third quarter results
Shares in AirAsia advanced 2.4% to MYR2.61, its highest close since 22-Oct-2010. AirAsia last week revealed strong third-quarter results with third quarter net profit more than double in the quarter on the back of higher operating revenue and improved yields.
1time closed down 2.6% on Friday. The LCC has finalised a USD9.2 million (ZAR65 million) agreement to sell a 25% stake in the company to Mtha Aviation and SKMT Sunrise Investment Group. The capital will be used to fund expansion and develop its facilities at Safair Technical, it MRO division. The transaction will see 1time issuing a further 70 million shares at a price of approximately 93c a share.
Vueling was 2.1% weaker on Friday as risky Spanish bonds and equities were sold off as Spain was identified as another weak spot in the euro zone. Spain’s Ibex 35 index weakened 1.8%.
All other European LCCs, with the exception of Dart Group, also lost ground on Friday. In the US, despite the short session and thin trading volumes, almost all LCCs closed lower. JetBlue was stable.
Selected LCCs daily share price movements (% change): 26-Nov-2010
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