GOL shares up for the sixth consecutive day; US LCC shares weaker
In South America, GOL's shares gained 0.8% yesterday, for a sixth consecutive day, the longest period of gains since May-2009, after the LCC stated domestic demand may grow by as much as 14% in 2009, a dramatic increase from the previous estimates of between 2% and 4%.
According to CFO, Leonardo Pereira, "demand has been stronger than we imagined. Things that were unthinkable a few months ago are happening now." Mr Pereira added, "there's an increase in demand generated by a reduction in ticket prices, but a larger part of the demand growth comes from the economic recovery".
Selected LCCs daily share price movements (% change): 10-Nov-2009
Source: Centre for Asia Pacific Aviation & Yahoo! Finance
US LCC (and network carrier) stocks fell on Tuesday, in line with broader market conditions, with JetBlue, Southwest, Allegiant and AirTran all down, by 0.8%, 1.2%, 1.3% and 3.0%, respectively.
In Europe, easyJet, Air Berlin and Ryanair were all down, by 0.8%, 1.1% and 1.2%, respectively, while in the Asia Pacific, Virgin Blue shares were up 5.9% and SpiceJet shares slumped 7.4%.