JetBlue reports 13% rise in PRASM; United Airlines and Delta Air Lines up on analyst recommendations

The majority of North American carriers were up on Thursday (09-Jun-2010), gaining with the wider market. The Dow (-0.4%) was up on news China’s exports reportedly grew 50% year-on-year in May-2010, suggesting continued strong growth in the underlying economy.

JetBlue reports 13% rise in PRASM

JetBlue (+0.2) gained only slightly for the day. The LCC reported a 3.9 ppt year-on-year rise in load factor for May-2010, to 81.3%. The improvement was the result of a 9.8% rise in traffic (RPMs) on a 4.5% increase in capacity (ASMs) for the month. Passenger numbers rose 8.5% as a result, to 2.0 million. The carrier also reported a preliminary 13% rise in passenger revenue per ASM (PRASM) for the month. 

See related CAPA Profile:

United Airlines and Delta Air Lines up on analyst recommendations

United Airlines (+2.5%) gained after Zacks Equity Research recommended the carrier’s stock, stating it was the most likely to benefit the most from the improving economy. The analysts cited the carrier's improving revenues and a rise in Business demand on international routes.

Zacks also recommended Delta Air Lines (+1.0%), stating the carrier is “uniquely positioned” to benefit from its merger with Northwest Airlines. It also noted that Delta has recently seen a “surge” in Business demand and improved pricing. See related report: Delta on the move: New York, Africa, Asia Pacific and more

American Airlines (+2.2%), JetBlue (+0.2%) and Southwest Airlines (-0.4%) were also given ‘Neutral’ recommendations. 

South American carriers shares were down, as Brazil’s Bovespa (-0.5%) was pushed lower by a decline in the energy sector. GOL (-3.4%) and TAM (-1.6%) fell the most. Air Canada (+5.8%) and Republic Airways (+3.7%) were the day’s biggest gainers.

North & South America selected airlines daily share price movements (% change): 09-Jun-2010