Airline stocks hit by fuel concerns; progress on LAN/TAM merger
North and South American airline stocks suffered another day of heavy falls, led by Hawaiian Airlines, which dropped 6.1%, and United Continental, which was down 5.8%. The AMEX Airline Index dropped 2.6%, as crude oil climbed above USD112 for the first time since Sep-2008.
- North and South American airline stocks experienced significant declines, with Hawaiian Airlines and United Continental being the hardest hit.
- The AMEX Airline Index dropped by 2.6% as crude oil prices rose above USD112 for the first time since September 2008.
- Latin American airline stocks were also affected, with LAN, TAM, GOL, and Copa Airlines all experiencing share price falls.
- LAN reported that Chile's antitrust court had filed documents related to the proposed merger between LAN and TAM, which LAN and TAM are using to support their case against antitrust proceedings.
- LAN reported a 51.5% increase in traffic for March 2011, attributed to the inclusion of AIRES operations and the impact of the 2010 earthquake in Chile.
- Overall, the airline industry in the Americas faced challenges due to falling stock prices and rising oil prices.
Latin American stocks were somewhat less affected, although LAN, TAM, GOL and Copa Airlines all recorded share price falls.
LAN reported Chile´s antitrust court, had filed documents presented by LAN and TAM Linhas Aéreas Chile Branch (TAM), containing information related to the announced business combination between LAN and TAM. The information is to support their case against the antitrust proceedings over the proposed merger. Meanwhile, LAN reported a 51.5% increase in traffic for Mar-2011. The increase is due to the inclusion of AIRES domestic and international operation and the one-time impact of the 27-Feb-2010 earthquake in Chile, which severely disrupted operations in Mar-2010.
Selected North and South American airline share price movements (% change): 08-Apr-2011
