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Hawaiian Airlines renegotiates lending agreements; SkyWest traffic soars on Expressjet acquisition

14-Dec-2010

Hawaiian Airlines (+4.0%) stocks rose on Monday (13-Dec-2010), despite the majority of North and South American airlines ending the day lower. The carrier rose after announcing it has completed a successful renegotiation of lending agreements that addresses upcoming term loan maturities, provides for an expanded revolving line of credit, and puts the carrier in a strong position for future growth.

In connection with entering into the amended lending agreements, Hawaiian has repaid term loans that would have matured in 2011, strengthening the company's balance sheet as it continues to pursue new expansion opportunities. In addition, Hawaiian has secured an expanded revolving line of credit that allows for the borrowing of up to USD75 million over a four-year period, against a borrowing base of the company's account receivables, ground equipment, spare engines and certain aircraft.

See related CAPA Profile: Aircraft Leasing and Finance

SkyWest traffic soars on Expressjet acquisition

SkyWest (+0.6%) also made a slight gain after reporting a 43.9% year-on-year rise in passenger numbers for Nov-2010, to 4.0 million. The significant increase was due to the carrier’s acquistion of Expressjet earlier this year. Load factor for the month was up 2.2 ppts to 79.2%. This was the result of a 47.1% increase in traffic (RPMs) on a 42.9% increase in capacity (ASMs).

Elsewhere, GOL was flat at the end of trading, but rose earlier in the day after Santander analysts stated the LCC’s Nov-2010 traffic indicates improving profits. The carrier reported a 5.4% rise in passenger traffic (RPKs) for Nov-2010 last week. LAN Airlines (+0.5%) and TAM (+0.1%) also made marginal gains.

See related CAPA Profile: Traffic and Capacity

US Airways (-3.8%) and Allegiant (-3.6%) led the general decline in stocks for the session. United Continental Holdings (-3.5%) was also down. 

North & South America selected airlines daily share price movements (% change): 13-Dec-2010


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