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Virgin Blue check-in problems to affect profit by up to USD20m; double-digit yield gains at EVA Air

12-Oct-2010

Shares in Virgin Blue declined 3.2% yesterday, as the carrier estimated a pre-tax profit affect of AUD15 million-20 million (USD15-20 million) from an initial assessment of the reservations and check-in system outage, with the carrier adding it would actively pursue all avenues to recover the cost. The carrier, which uses a Navitaire/Accenture system, added that "prior to the outage, the group had seen an improvement in general trading conditions when compared to the corresponding period last year".

Also recording a share price reduction yesterday was EVA Air, with shares in the carrier 2.6% weaker. This occurred despite the carrier reporting a 33% jump in passenger yield and a 23% improvement in cargo yields to USD 8.30 cents and USD 26.70 cents, respectively, in Sep-2010. Passenger numbers increased 4.4% to 493,882 with an average load factor of 748% (-2.5 ppts) in the month, with cargo volumes soaring 30% to 71,644 tonnes.

Tiger Airways passenger numbers up 17% in Sep-2010

Shares in Tiger Airways slipped 2.0% yesterday. On the same day, the carrier reported a 17% increase in passenger numbers in Sep-2010 to 464,000, with an average load factor of 87% (a 1 ppt year-on-year reduction). The carrier added that forward bookings “remain strong”, especially over the Dec-2010 to Feb-2011 peak period. 

On the other end of the spectrum, shares in Australia’s Skywest gained strongly up 6.7%.

Asia Pacific selected airlines daily share price movements (% change):  11-Oct-2010


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