Stocks of the major LCCs were mixed on Friday (26-Jun-09). In the Asia Pacific region, AirAsia's shares slipped 1.7%, while SpiceJet gained 1.8% (see below). Over the weekend, AirAsia announced its intention to launch AirAsia X services to US destinations, including Oakland, New York, Los Angeles, San Francisco and Hawaii, in 2010, as part of its future international expansion plans.
In other low-cost long-haul news, Jetstar stated it would continue with its expansion plans despite the deferment and cancellation of its B787 orders, and is reportedly considering ordering additional A330s.
In the Americas, Allegiant, JetBlue and GOL shares all gained, by 5.0%, 4.1% and 3.4%, respectively, while Southwest slipped, by 0.9%, ahead of its launch of services to New York LaGuardia Airport yesterday.
Selected LCCs daily share price movements (% change): 26-Jun-09
SpiceJet's widening losses
SpiceJet's shares gained 1.8% on 26-Jun-09. This preceded the release, on 27-Jun-09, of the carrier’s financing highlights for the 12 months ended 31-Mar-09, showing a considerable widening in losses, with a loss before tax of USD68.8 million (compared to a loss of USD27.3 million in the previous corresponding period). Net losses ballooned to USD75.6 million, compared to a loss of USD27.8 million in the previous corresponding period. Revenues increased 30.5% to USD352.0 million, although this increase was exceeded by a 37.2% year-on-year increase in total costs.
The carrier’s share price reached its 2009 peak in early Jun-2009, but it has lost over 23% of its capitalisation since then and is trading just above its depressed start of 2009 levels.
Spicejet share prices: 01-Jan-2009 - 26-Jun-2009
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