LCC shares fall as IATA cuts industry outlook

LCC shares fell in trading yesterday, as IATA lowered its airline industry profit outlook from USD9.1 billion to USD8.6 billion. Fuel costs are expected to increase 19.4% year-on-year and overall costs are expected to increase 9.7%. Asia Pacific carriers fell the heaviest, with AirAsia down 6.3%, Virgin Blue losing 5.6% and Skymark falling 4.8%.

Details of IATA’s revised profit forecast for 2011 are as follows:

  • Revenue: USD594 million, +7.6% year-on-year;
  • Operating profit: 18.4 million, -32.8%;
  • Net profit: USD8.6 million, -46.3%;
  • Passenger numbers: 2570 million, +5.4%;
  • Passenger yield: +1.5%;

Selected LCC daily share price movements (% change): 02-Mar-2011