TAM and GOL decline on strike threat; United Continental Holdings expecting improved PRASM
The staff are seeking a salary increase of at least 13%, after representatives from their respective carriers only offered a 6.58% pay increase. The Brazilian Defence Ministry is reportedly preparing measures to avoid a strike by going through local courts and fining employees in case of a strike.
The decline was despite a rise in the Bovespa (+0.4%) late in trading.
See related CAPA Profile: Industrial Relations
American Airlines postpones New York-Tokyo service
American Airlines (-1.2%) also declined for the day. The carrier announced during trading it has requested US regulators for permission to delay the launch of New York JFK-Tokyo Haneda service from 31-Jan-2010 to 01-Mar-2011 to avoid the traditionally slow February travel period. The carrier stated the delay would enable the carrier to avoid "start-up in the depths of the off-peak season". The carrier stated Feb-2010 is notably the slowest month for travel between continental US and Tokyo with 25% fewer bookings than in Mar-2011. The carrier continued that an extension would allow American to "benefit from this important seasonal upswing in Tokyo traffic".
See related CAPA Profile: Route Changes
US Airways (-1.9%) and Delta Air Lines (-1.7%) were also down for the day.
United Continental Holdings expecting improved PRASM
United Continental Holdings (+0.4%) was one of few carriers to end the session higher, after stating it expects a 17.4-17.7% year-on-year improvement in passenger revenue per ASM (PRASM) for FY2010, to between USD 11.77 cents and USD 11.79 cents. Costs per ASM (CASM) are also expected to rise for the year by 7.4-7.5%, to between USD 12.29 cents and USD 12.30 cents. However, CASM excluding fuel is expected to rise only 2.4-2.5%, to between USD 8.53 cents and USD 8.54 cents.
Elsewhere, Allegiant (+1.0%) and Air Canada (+0.6%) also ended the session higher.
North & South America selected airlines daily share price movements (% change): 22-Dec-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance