Expressjet shareholders approve SkyWest merger; LAN Airlines traffic on the up
ExpressJet Holdings (+0.1%) made only a minor gain on Wednesday (10-Oct-2010) as North and South American airline stocks ended trading mostly down. Late in trading, the carrier announced its stockholders have voted to adopt and approve the merger agreement between SkyWest and ExpressJet Holdings at a special meeting held on 10-Nov-2010 in Houston, Texas.
- ExpressJet Holdings' stockholders approve merger agreement with SkyWest.
- LAN Airlines reports a 3.3 ppt increase in load factor for October 2010.
- Copa Airlines accepted into the Star Alliance, expanding the alliance's presence in Latin America.
- Hawaiian Airlines and Delta Air Lines experience significant stock losses.
- Republic Airways plans to offer 12 million shares of its common stock in a public offering.
- Overall, North and South American airline stocks end trading mostly down.
On 04-Aug-2010, ExpressJet and SkyWest announced they entered into a definitive merger agreement whereby SkyWest will acquire all of the outstanding common stock of ExpressJet for USD6.75 per share in cash subject to the conditions of the definitive merger agreement. SkyWest advised that its intention is that ExpressJet Airlines will be merged with its wholly owned subsidiary, Atlantic Southeast Airlines, following the closing of the transaction and receipt of all required regulatory approvals. The merger is currently expected to close on 12-Nov-2010.
LAN Airlines (+1.2%) gained after reporting a 3.3 ppt year-on-year improvement in load factor for Oct-2010, to 83.5%. The rise was led by a 4.1 ppt improvement in international load factor, to 84.8%, while domestic load factor was up 1.6 ppts to 80.6%.
The increased load factor was the result of a 16.0% rise in traffic (RPKs) on the back of a 11.3% increase in capacity (ASKs). Passenger numbers were also up for the month, rising 16.5% to 1.6 million.
See related CAPA Profile: Traffic and Capacity
Also in Latin America, Copa Airlines (-0.1%) slipped despite news Star Alliance has accepted Copa's plans to enter the global alliance. Avianca-TACA will also join the alliance. The combined network of the two airline groups gives Star Alliance a more prominent footprint in Central America, the Caribbean and the northern and western regions of South America, as well as additional direct connections between Latin America and cities in Europe.
See related CAPA Profile: Global Alliances
Elsewhere, Hawaiian Airlines (-2.8%) and Delta Air Lines (-2.3%) stocks made the biggest losses for the session, while Republic Airways (+8.6%) made its second consecutive daily gain after announcing on 08-Nov-2010 that it intends to offer 12 million shares of its common stock in an underwritten public offering.
North & South America selected airlines daily share price movements (% change): 10-Nov-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance