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LCCs account for 22% of worldwide capacity, Ryanair reduces full year traffic target

25-Sep-2009

OAG stated the low cost sector reported growth to/from and within all regions, with the exception of intra-Europe (2% fewer flights and 1% fewer seats) and within North America (8% fewer flights and 9% fewer seats) in Sep-2009, accounting for 18.4% and 22.2% of total global frequencies and seat capacity, respectively.

Ryanair reduces full year traffic target, but maintains profitability forecast

Ryanair's shares slipped 3.9% yesterday as Europe’s largest LCC, reduced its full-year traffic target from 67 million to 66 million, predominantly due to capacity reductions at Dublin and London Stansted.

The carrier, which held its AGM yesterday, has maintained its full year profit forecast, at the low end of the EUR200-300 million range.

Ryanair also suggested that it is considering paying off a one-off dividend, a change from its usualpolicy of cash preservation. The carrier currently has cash reserves totally approximately EUR2.5 billion.

CEO, Michael O’Leary, however stated that Ryanair would maintain most of its cash reserves, as it is in negotiations with Boeing and Airbus, for another large order of up to 200 aircraft.

Selected LCCs daily share price movements (% change): 22-Sep-09

AirAsia announced placement of 380 million shares

In the Asia Pacific, AirAsia shares were up 0.7% yesterday. The carrier has announced a corporate proposal for the private placement of 380 million new ordinary shares (price at USD0.03 (MYR0.10) per share), at an issue price of USD0.38 (MYR1.33) per placement share. 


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