SkyEurope jumps, Air Berlin also advances, while AirAsia, easyJet and Ryanair slip
Stocks of the major LCCs were mixed on Tuesday (30-Jun-09). In Europe, Ryanair and easyJet shares were down 2.0% and 3.3%, respectively, in line with overall reductions in European stock markets, while Air Berlin shares were up 0.6%. In the Americas, WestJet, Allegiant and Southwest shares were up by 5.5%, 2.1% and 0.9%, respectively, shrugging off a weaker Wall Street, as oil prices dipped below USD70 per barrel.
GOL, whose share price gained 26.0% during the month of June, fell back 1.9% on Tuesday.
In the Asia Pacific region, AirAsia's shares slipped a further 3.5%, following reductions of 1.7% on both Monday and Friday. Also in the Asia Pacific region, Virgin Blue shares gained 1.6%.
AirAsia yesterday stated it has sold 3.5 million seats in 2Q2009 (between 01-Mar-09 and 27-Jun-09), a 23% year-on-year increase, as the carrier seeks to stimulate new demand and generate strong growth. Through this strategy, the carrier has become Asia's sixth largest airline (by passenger numbers) in the space of seven years, with the carrier expecting to become the second largest carrier in Asia by 2013, based on current growth projections. The carrier has increased its domestic market shares (by passenger numbers) in Malaysia, Thailand and Indonesia, to 63%, 43% and 8%, respectively, an increase from 28%, 22% and 2% in 2005. [Full Presentation]
The carrier plans to follow a similar strategy with its low-cost long-haul subsidiary, AirAsia X, which plans to operate a fleet of 27 aircraft, transporting 7.4 million passengers across 32 routes by the end of 2013. The long-haul carrier is targeting USD1.7 billion in revenue and a profit of USD315 million by 2013.
Selected LCCs daily share price movements (% change): 30-Jun-09
