AirAsia’s shares gained 2.2% on 31-Dec-2009, ending the year with share price growth of 57% in 2009.
Subsequent to close, AirAsia and Qantas announced plans to hold a media conference on 06-Jan-2010 to announce the details of their strategic agreement between Jetstar and the Malaysian LCC, discussing how the two plan to work “innovatively together” to improve cost efficiencies.
The two carriers reportedly plan to work together to obtain better pricing for aircraft and parts purchases, and the agreement may also include maintenance services.
Another tough year ahead: Ryanair
In Europe, Ryanair CEO, Michael O’Leary, stated he expects Europe’s top executives to face another tough year in 2010, adding that he expects 2010 “to be very conservative”.
Ryanair’s shares were up 0.7% on 31-Dec-2009, with Europe’s largest LCC experiencing share price growth of only 4% in 2009 (comparatively, easyJet’s shares gained 23% in 2009, with shares in Norwegian and Vueling soaring, up 211% and 226% in the year).
In the US, Southwest’s shares were up slightly on 31-Dec-2009 (+0.4%), compared with gains of 27% for the full year. AirTran and Allegiant both witnessed share price growth of 0.3% on 31-Dec-2009 (compared to full year growth of 16% and 8%, respectively), while JetBlue’s shares were down 0.9% on Friday, after a year in which the carrier’s valuation slumped by 25%.
Selected LCCs daily share price movements (% change): 31-Dec-09
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