06-May-2011 4:10 PM
US airlines shares jump as fuel dips under USD100 per barrel
Analysis
WTI crude has traded under USD100 per barrel for the first time since Mar-2011, sending US airline shares spiking. American Airlines was the big mover, up 7.5%, while Delta Air Lines shares gained 7.1%. Latin American carriers also traded strongly, with Copa up 7.2%.
Meanwhile, Air Canada has forecast that higher fuel costs could add as much as CAD800 million to its costs in 2011. Fuel costs in for 1Q2011 were up 20% year-on-year.
Air Canada financial highlights for the three months ended 31-Mar-2011:
- Operating revenue: USD2850 million, +9.3% year-on-year;
- Operating costs: USD2918 million, +6%;
- Fuel: USD768.1 million, +20%;
- Labour: USD523.8 million, +7%;
- Operating profit (loss): (USD68.3 million), compared with a loss of USD140.8 million in p-c-p;
- Net profit (loss): (USD19.7 million), compared with a loss of USD115.9 million in p-c-p;
- Passenger traffic (RPMs): +5.7%;
- Passenger load factor: 77.9%, -1.5 ppt;
- Passenger yield: USD 19.25 cents, +4.2%;
- Passenger revenue per ASM: USD 15.01 cents, +2.2%;
- Revenue per ASM: USD 18.01 cents, +1.5%;
- Operating cost per ASM: USD 18.43 cents, -1.4%;
- Cost per ASM excl fuel: USD 13.56 cents, -5.3%;
- 2Q2011 forecast:
- Capacity (ASMs): +5.5% to +6.5% year-on-year;
- Cost per ASM excl fuel: -0.5% to -1.5%;
- FY2011 forecast:
- Capacity (ASMs): +3.5% to +4.5%;
- Cost per ASM excl fuel: -2.0%. [more]
Selected AAD daily share price movements (% change): 05-May-2011
