Allegiant slowing growth further in 1H2011; shares in cargo carriers stronger

Shares in US LCC, Allegiant Air dropped 7.9%, the largest single day decline at the carrier for nine months. The carrier recently reported a USD20.9 million net profit for the three months ended 31-Dec-2010. However, announced plans to slow capacity growth further over 1H0211 and increase its fares to pass higher fuel costs onto passengers.

US cargo carriers performed well in trading, with Atlas Air up 6.1%, UPS gaining 4.1% and FedEx up 2.6%.

WestJet renewed its multi-year strategic distribution agreement with Expedia. Under the renewed agreement, WestJet's full schedule of fares and inventory will continue to be made available to consumers who book their travel each month on Expedia, Egencia and Hotwire sites in the United States and Canada. Shares in WestJet were down 1.5%, while shares in Air Canada were down 2.5%.

Selected North & Latin American airlines daily share price movements (% change): 01-Feb-2011