AirTran fined USD20,000 for violating advertising rules: Peanuts share wrap
North and South American low cost carrier stocks fell back on Friday (28-May-2010) with a decline in the wider market. The Dow will suffer its biggest monthly drop since Feb-2009, falling 7.9% so far in May-2010, with a 1.2% decline on Friday.
Allegiant (-0.6%), GOL (-0.7), Air Tran (-1.1%), WestJet (-1.1%), Southwest (-1.6%) and JetBlue (-2.1%) closed lower.
During trading on Friday, the US Department of Transportation assessed civil penalties against AirTran and Delta Air Lines for violating rules that require airline price advertisements to disclose the full price consumers must pay for air transportation. AirTran was fined USD20,000 and Delta USD40,000.
Last week, AirTran launched non-stop weekly Wichita Mid Continent-Orlando service, while Allegiant reportedly plans to discontinue its Monterey-San Diego service in Jul-2010 due to a lack of demand after launching the service in May-2009.
Asia Pacific: SpiceJet leads, Virgin Blue slumps almost 28%
Also on Friday, SpiceJet announced preliminary talks with the US Export-Import Bank to finance the acquisition of two B737-800s during 2011-2012, which would add to its fleet of 20 leased B737s. Shares in the airline gained 3.7% on Friday.
Meanwhile, Virgin Blue dropped 27.9% on Friday, following its shock profit warning. See related report: Aspirational Virgin Blue faces reality shock. Aftermath of another profit warning
Selected LCCs daily share price movements (% change): 28-May-2010
Source: Centre for Asia Pacific Aviation, Yahoo! Finance & Reuters