My Account Menu

CAPA Login

Register to trial CAPA Membership!

Oil threatens Virgin Blue's long-term outlook, Skymark continues rally


Shares in Australia’s Virgin Blue dipped 2.3% yesterday. Maquarie analysts lowered the carrier’s underlying profit forecast by 21% for FY2011 and 10% for FY2012, due to the prospect of oil prices returning to more than USD100 per barrel.

Macquarie believes Virgin Blue’s alliances may help shelter it from the effects of the increase in oil prices. Virgin Blue has signed agreements with Air New Zealand, Etihad Airways and Skywest Airlines over the past six months.

Japanese LCC Skymark Airlines gained 6.2%, continuing its five-day upward run. The stock has gained 3.9% for the year-to date after falls earlier this month. Shares in other Asian LCCs were down, with Tiger Airways slipping 0.5% and Air Asia down 0.3%

Selected LCCs' daily share price movements (% change): 18-Jan-2011


Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.