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United Airlines “outpacing the industry”; American Airlines expecting 1Q2010 unit revenue to rise


North and South American shares soared on Tuesday (09-Mar-2010) after a number of US carriers stated things are looking up financially for 2010. Only two carriers, Allegiant (-4.3%) and Republic Airways (-2.6%) were down at the end of trading.

In the wider market, the Dow (+0.1%) rose marginally, with telecommunications and technology sectors the day's big gainers.

United Airlines “outpacing the industry”;

United Airlines (+3.7%) rose to a 52-week high on 09-Mar-2010, after CFO, Kathryn Mikells, stated the carrier has seen "recent revenue improvements" in its operations, which are "outpacing the industry", driven by improvements in international and business travel demand. PRASM levels increased 10.5% in Jan-2010 and 18.0% in Feb-2010 (figures based on mid-point of disclosed range), with the carrier's international premium cabin bookings up 8% and 25%, respectively, in the first two months of 2010 (off negative growth of 38% in both Jan-2009 and Feb-2010). Corporate customer revenues also gained, up 10% and 13%, respectively (from negative growth of 33% and 35%, respectively, in the corresponding periods in 2009

The carrier also claimed it is a "leader in creating new revenue streams", generating USD13.17 per passenger from ancillary sources in 2009 (+22.2% year-on-year and up 70% from 2007 levels), which the carrier believes is "the highest of any US airline".

American Airlines expecting 1Q2010 unit revenue to rise 6.5-7.5%

American Airlines (+9.3%) shares also rose significantly after announcing it expects its 1Q2010 passenger unit revenue to rise between 6.5% to 7.5% versus 1Q2009, and its capacity to rise 1% from 2009 following the resumption of Mexican services after the Swine flu outbreak.

US Airways moves above ten-day moving average

US Airways (+5.3%) moved above its ten-day moving average of USD7.41 on Tuesday, according to SmarTrend. Stocks ended trading at USD7.71, after COO, Robert Isom, stated the revenue environment "continues to show strong improvement" in 2010, and it now expects to generate more than USD500 million in "a la carte" revenue in 2010, up from USD424.2 million in 2009.

Southwest (+1.0%) meanwhile stated 1Q2010 capacity would be down 6-7%, with March bookings looking “very strong”. A “modest” rise in passengers revenue is expected. See related report: JetBlue and Southwest advance on slower growth plans. AirTran soars

Alaska Air (+5.2%) and Continental Airlines (+4.9%) also made strong gains.

Also available in today’s America Airline Daily:

North & South America selected airlines daily share price movements (% change):  09-Mar-2010

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