Expressjet down despite rise in load factor; US Airways expected to report record profit for 3Q2010
North and South American airline stocks advanced on Monday (13-Sep-2010) as the Dow (+0.8%) on improved Chinese economic data and banks reached an agreement on capital reserve regulations. The AMEX Airline Index (+1.1%) ended the day higher as a result.
The gain in airline stocks was despite another rise in oil prices (+1.0%) to USD77.19, sending them closer to the USD80.00 mark.
Allegiant board approves expansion of stock repurchase
Allegiant (+5.1%) was the biggest gainer of the day after its Board of Directors approved an expansion of its stock repurchase programme, having authorised the repurchase of an additional USD50 million of the company's stock.
See related report: Allegiant sees continued RASM growth; approves stock repurchase programme; to add 16 seats to MD-80s
See related CAPA Profile: Privatisation and Ownership
Delta Air Lines announces early tender results
Delta Air Lines (+1.0%) gained after it announced that approximately USD99 million aggregate current principal amount outstanding of securities subject to its Any and All Offer was validly tendered and not withdrawn prior to 10-Sep-2010, the early tender deadline for the previously announced cash tender offer. Delta also announced that approximately USD359 million aggregate current principal amount outstanding of securities subject to its Dutch Auction Offer has been validly tendered and not withdrawn as of the early tender deadline.
Expressjet down despite rise in load factor
ExpressJet (-0.5%) slipped, despite reporting a 19% year-on-year improvement in traffic (RPMs) in Aug-2010, as capacity (ASMs) was increased 18% for the month. This resulted in a 0.9 ppt rise in load factor, to 80.7%. Average stage length meanwhile declined 6%, to 547 miles.
See related CAPA Profile: Traffic and Capacity
US Airways expected to report record profit for 3Q2010
US Airways fell, despite AirlineFinancials.com forecasting the carrier will report a record 3Q profit of USD225 million next month, with revenue of USD3.2 billion. The result would be a massive improvement from the carrier's 3Q2008 loss of USD865 million, including special items. According to the analysts, Alaska Air was the only carrier of the nine largest US airlines to have a profit margin higher than US Airways for 2Q2010.
Elsewhere, Hawaiian Airlines (+2.6%) made strong gains for the day, while GOL (+2.5%) also ended the session higher. WestJet (-1.7%) and Republic Airways (-1.0%) were down.
North & South America selected airlines daily share price movements (% change): 13-Sep-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance