American and JetBlue reportedly looking to expand joint booking agreement


American Airlines and JetBlue are reportedly in talks to add more cities outside the US to their joint booking and frequent flyer agreement. Expanding their relationship would feed traffic to American Airlines' international hubs in New York and Boston. JetBlue would gain access to markets its domestic network does not serve.

Shares in American Airlines were down 1.8% yesterday. JetBlue shares were flat. Moody's upgraded the carrier's corporate and default-probability ratings one notch, from Caa1 to B3, six levels below investment grade, and the senior unsecured rating from Caa3 to Caa2. The upgrade was prompted by better traffic figures from the airline.

US airline shares were generally lower, as oil prices rose again on Thursday.

Shares in Copa Holdings were up 2.3%, with the carrier reporting system-wide passenger traffic (RPM) increased 29.2%, while capacity (ASM) increased 23.1% for May-2011. System load factor for May-2011 was 76.3%, a 3.6 percentage point increase when compared to May 2010. International passenger traffic grew 33.5%, while capacity increased 27.7%. Domestic traffic decreased 6.1%, while capacity decreased 11.9%.

Selected AAD daily share price movements (% change): 10-Jun-2011

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More