Republic Airways slips ahead of financial results; Continental aiming to start making money in 2010
North and South American carriers’ stocks were mixed on Wednesday (24-Feb-2010), with the AMEX Airline Index (+0.2%) ending trading up slightly, as oil prices (+1.5%) gained, to USD80.00.
Shares were also hurt on news further disruptions may be imminent later this week, as further snow and storms makes their way towards the Northeast coast of the US. In the wider market, the Dow (+0.9%) was up, following comments by US Federal Reserve Chairman, Ben Bernanke, that interest rates would stay very low for quite some time, to sustain the recovering economy.
Republic Airways slips ahead of financial results
Repubic Airways (-3.8%) slipped ahead of reporting its 4Q2009 financial results. Following trading the carrier reported a 5.9% year-on-year improvement in net profit for 4Q2009, to USD20.1 million, while operating profit rose 115.4%, to USD136.4 million.
However, for FY2009, the carrier reported a 53.1% decline in net profit, to USD39.7 million, while operating profit gained 6.4%, to USD271.4 million. See related report: Republic profit nearly doubles revenues on Midwest, Frontier acquisitions
Continental aiming to start and keep making money in 2010
Continental Airlines (-1.2%) also declined. CEO and President, Jeff Smisek, stated the carrier’s goal for 2010 is to "start making money and keep making", however he noted that better year-on-year improvements must be "kept in perspective", due to unusually weak results in 2009. He nonetheless hopes "2010 will be a far better year than 2009", adding his focus will remain on international routes as it is "where the business traveler will pay a premium for a better product".
Air Canada (+2.0%) and FedEx (+2.0%) were meanwhile up at the end of trading .
US Travel Association expects Business demand to increase
US Travel Association meanwhile announced during trading that the percentage of Business travellers planning to travel over the next six months has increased 2% year-on-year, to 15%, promising news for US carriers. However, the number of people planning to travel for leisure declined 7% to 56%.
For the latest in North and South American airline news, why not subscribe to America Airline Daily? Other stories featured in today’s issue include:
- WestJet takes delivery of 88th B737 (NG) aircraft;
- US and Iraq sign Memorandum of Cooperation;
- AirTran Airways unveils seasonal service schedule;
- Delta Air Lines to add two additional services per day at Northwest Florida Beaches.
North & South America selected airlines daily share price movements (% change): 24-Feb-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance