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JetBlue yield weakness continues, Southwest sees PRASM improvements, Air Berlin RASK growth enters

6-Nov-2009

JetBlue’s stocks were up 1.5% yesterday, despite the LCC stating it experienced a 10% reduction in passenger revenue per available seat mile (PRASM) during Oct-2009.

Also in the month, the carrier reported a 7.5% increase in revenue passenger numbers to 1.7 million, while load factors gained slightly (+0.1 ppts to 80.8%).

JetBlue passenger revenue (PRASM) growth (% change year-on-year): Oct-2007 to Oct-2009

Southwest sees second consecutive month of PRASM improvements

Southwest, meanwhile, stated it expects passenger revenue per ASM to have increased in the 1% range in Oct-2009 – for the second consecutive month of increases - thanks to large capacity cuts during the month.

Southwest PRASM year-on-year increase: Jan-2009 to Oct-2009

Southwest transported 7.4 million revenue passengers (-0.7% year-on-year), with load factors rising an impressive 8.8 ppts (to 79.2%) for four consecutive months of healthy load factor gains. 

In Europe, Air Berlin’s shares remained stable yesterday, upon the release of the carrier’s Oct-2009 traffic results, which showed a 1% reduction in revenue per ASK to EUR 6.13 cents, for the first year-on-year reduction in 18 months.

Air Berlin revenue RASK growth (% change year-on-year): Apr-2008 to Oct-2009

However, the actual RASK level remains above EUR 6.00 cents and the carrier’s two-year change in RASK level is up by double-digits (+19.9%).

Air Berlin revenue RASK (EUR cents): Apr-2008 to Oct-2009

Air Berlin two-year change in revenue RASK (EUR cents): Apr-2009 to Oct-2009

The German LCC transported 2.7 million passengers in the month ((including TUIfly's former city connections), a 0.9% reduction, as the carrier implemented a targeted 1.2% capacity (ASKs) reduction. Load factor improved 0.2 ppts to 80.2% in the month. 

Selected LCCs daily share price movements (% change): 05-Nov-09

Also, in Europe, easyJet’s shares slipped 1.8% yesterday. The carrier, which also released Oct-2009 traffic results yesterday, transported 4.2 million passengers, a 6.6% year-on-year increase, with a 3.0 ppt load factor improvement to 86.8%.


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