Copa Airlines load factor slips; BlackRock acquires stake in GOL; WestJet in talks with Emirates


Copa Airlines (-1.8%) fell with the majority of North and South American airline stocks on Tuesday (07-Dec-2010), after Copa Holdings reported a 0.5ppt year-on-year slip in load factor for Nov-2010 to 80.3%. The decline was the result of a 4.5ppt fall in Copa Airlines Colombia load factor to 70.5%. In comparison, Copa Airlines load factor was up 0.4ppts, to 82.2%.

  • Copa Airlines reported a decline in load factor for November 2010, primarily due to a decrease in load factor for Copa Airlines Colombia.
  • GOL announced that BlackRock has acquired a 5.09% stake in the airline.
  • US full-service carriers, including US Airways, American Airlines, and United Continental Holdings, experienced significant declines in their share prices.
  • WestJet is in talks with Emirates for a potential agreement to expand its global network.
  • WestJet aims to establish agreements with airlines from the Middle East, Africa, and South America, following its recent partnerships with Cathay Pacific and American Airlines.
  • Atlas Air and Allegiant were among the few airlines that saw an increase in their share prices.

The fall in loads was the result of a 19.3% rise in traffic (RPMs) on a 20.1% increase in capacity (ASMs) over the month.

BlackRock acquires 5.09% stake in GOL

GOL (-2.5%) was also down for the day. During trading, GOL announced BlackRock has acquired a 5.09% stake in the carrier with BlackRock holding a total of 4.8 million preferred shares and 1.9 million American Depositary Receipts.

Elsewhere, US full service carriers US Airways (-5.4%), American Airlines (-4.8%) and United Continental Holdings (-4.7%) were the biggest decliners.

See related CAPA Profile: Privatisation and Ownership

WestJet in talks with Emirates

WestJet (+1.4%) was one of the few carriers to gain for the session after CEO Gregg Saretsky stated the carrier is in discussions with Emirates about a potential agreement as part of its plans to expand its global network. Mr Saretsky added that Emirates is one of a number of airlines WestJet is talking to. No other carriers were mentioned.

WestJet, which expanded its relationship with Cathay Pacific this year and has initiated a partnership with American Airlines, hopes to add similar agreement at the rate of one per quarter until it has agreements with the remaining five global regions including the Middle East, Africa and South America. The first step with any new partner would be an interline agreement, Mr Saretsky stated.

See related CAPA Profile: Codesharing and Interlining

Atlas Air (+2.7%) and Allegiant (+2.1%) were also up for Tuesday.

North & South America selected airlines daily share price movements (% change): 07-Dec-2010

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