08-Oct-2010 3:21 PM

Hawaiian Airlines load factor up 1.9 ppts; United Airlines reports improved RASM

North and South American airline stocks mostly fell on Thursday (07-Oct-2010) as investors await further news on future bookings and capacity management. Stocks were also pushed lower by a decline in wider markets, as investors also wait on new quarterly results and jobs data.

The Dow (-0.2%) slipped as a result. Oil prices (-1.9%) also ended the day lower, at USD81.67.

Hawaiian Airlines' load factor up 1.9 ppts

Hawaiian Airlines (+3.0%) was one of the day’s biggest gainers after reporting a 1.9 ppt year-on-year improvement in load factor for Sep-2010 to 85.7%. The improvement was despite a 3.7% decline in passenger numbers for the month, to 658,211.

See related CAPA Profile: Traffic and Capacity

United Airlines reports improved RASM

United Continental Holdings (+3.0%) also rose after United Airlines reported improved traffic results for Sep-2010. The carrier’s load factor was up 2.5 ppts for the month to 83.7%. The gain was on the back of a 6.4 ppt improvement in Asia Pacific loads and a 5.3 ppt rise in Latin America loads. Passenger numbers were up 7.6% for the period to 6.8 million.

For Sep-2010, consolidated passenger revenue per available seat mile (RASM) for United is estimated to have increased between 13.5-14.5%, while United’s mainline RASM is estimated to have increased between 14.0-15.0% compared with the same period last year.

The carrier also stated it ended 3Q2010 with an unrestricted cash, cash equivalents and short-term investments balance of approximately USD4.9 billion.

See related CAPA Profile: Yields

United and Air Canada reach US-Canada services agreement

In other United Continental Holdings news, the carrier concluded an MoU with Air Canada setting out the principles for a revenue-sharing joint venture that would provide for an enhanced partnership on US-Canada services, and generate substantial service and pricing benefits for consumers travelling between the two countries. The joint venture is expected to come into effect in early 2011, subject to Air Canada and United making the necessary filings and obtaining regulatory approval. The carriers already benefit from antitrust immunity granted by the Department of Transportation.

Southwest Airlines slips

Southwest Airlines (-0.5%) meanwhile slipped despite reporting a 11% increase in passenger RASM for Sep-2010. Load factor for the month was up only slightly, increasing 0.3 ppts, to 75%. Revenue passenger numbers were up 2.2% for the period, to 6.9 million.

Elsehwhere, Alaska Air (-4.6%) declined, while Republic Airways (+2.3%) and American Airlines (+1.1%) were up.

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