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ExpressJet to redeem notes; US Airways and Continental gain; Hawaiian Airlines down

27-May-2010

North and South American carriers gained again on Wednesday (26-May-2010), continuing to benefit from comments from JP Morgan the day before. The upward momentum is despite a fall in the wider market, with the Dow (-0.7%) slipping on concerns China is considering revising its investments in European government bonds.

The AMEX Airline Index (+2.2%) ended trading higher as a result, despite a 4.0% rise in oil prices for the day to USD71.51.

US Airways continues climb, up 75% so far this year

US Airways (+8.2%) continued to climb after JP Morgan’s upgrade of the carrier’s stock the day before, pushing the rest of the sector higher. The carrier’s stock has advanced 75% so far this year, easily making it the biggest gainer among major US carriers.

US Airways stock price: 04-Jan-2010 to 26-May-2010

Continental to launch Houston-Auckland service

Continental Airlines (+5.0%) was also a strong gainer for the day. During trading, Continental reopened Terminal C at Houston's Bush Intercontinental Airport after completing extensive renovations and expansion to its ticketing lobby and check-in area, security checkpoints, baggage claim and surrounding curbside areas. The carrier also announced plans to launch daily Houston-Auckland service on 16-Nov-2011, with B787 equipment.

See related report: Virgin Blue’s domestic load factors fall, Continental to launch B787 Houston-Auckland service

ExpressJet to redeem notes

ExpressJet Holdings, parent company of ExpressJet Airlines (+2.6%), meanwhile announced it intends to redeem USD5 million in principal of its 11.25% Convertible Secured Notes due in 2023 on 09-Jul-2010. The redemption of USD5 million in principal of its 11.25% Convertible Secured Notes due 2023 is part of ExpressJet's previously announced securities repurchase program and the remaining balance on the notes will be USD38.6 million.This balance represents the par value due to noteholders when the notes become due 01-Aug-2023.

Elsewhere, GOL (-2.8%) and Hawaiian Airlines (-2.2%) were down, while Air Canada (+7.4%) and American Airlines (+4.8%) were also up.

America Airline Daily is your one-stop shop for news, data and analysis from the dynamic North American, Caribbean and Latin American aviation markets. Other stories featured in today’s issue include:

  • AirTran to launch daily Milwaukee-New Orleans service;
  • Delta Air Lines, Branson AirExpress launch new flights from Nashville;
  • Midwest and Frontier merger progressing well according to Republic CEO;
  • US Department of Transportation to propose new customer rights rules;
  • Porter Aviation Holdings' 1Q2010 net loss narrows to USD6 million.

North & South America selected airlines daily share price movements (% change): 26-May-2010


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