LCC stocks slip again: GOL slumps, AirAsia, easyJet, Ryanair & Southwest lower, only Virgin Blue up
Despite reporting a USD29.6 million consolidated net profit in 1Q2009, GOL is expected to face intensive competition in the domestic market looking forward, due to lower demand and high levels of capacity across the industry, lowering its ability to increase passenger yields. The carrier previously reported it is unlikely it will be able to increase fares in 2009. The LCC has also downgraded its passenger forecast for 2009, from 29 million to 28 million passengers, and the domestic market growth rate is 2-4%, down from 6% previously.
In Europe, Ryanair and easyJet shares both fell by 2.8%, with Air Berlin stock down 5.5%, while in North America, Southwest shares slipped 2.0%, while Allegiant slumped 5.8%.
NB: All these carriers all feature prominently in The Centre's forthcoming LCC Outlook 2009 report.
Among the Asia Pacific/Middle East LCCs, Air Arabia shares slipped 4.5%, after gaining 3.7% on Friday, with AirAsia shares slipping 0.9%.
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Selected LCCs daily share price movements (% change): 15-Jun-09
