Skymark falls on improved results; 1time, Tiger outperform markets to strengthen

Skymark Airlines (-4.0%), Tiger Airways (+3.9%) and 1time Holdings (7.7%) were the most active LCC stocks on 29-Oct-2010. Global markets were mixed on Friday, with investors around the world awaiting the results of this week’s US Federal Reserve policy meeting and mid-term elections.

1time and Tiger strongest LCC performers

Among the gainers, 1time Holdings strengthened 7.7% on Friday, outperforming the benchmark Johannesburg All Share Index, which rose 0.8%.  Tiger Airways was another strong performer, gaining 3.9% in Singapore. The LCC announced on Thursday it has  signed a multi-million-dollar financing deal with Standard Chartered for pre-delivery payments of 14 new aircraft.

GOL gains after announcing US plans

In New York, Sao Paulo-based LCC GOL gained 1.7%. The LCC announced on Thursday it will launch charter services from Sao Paulo to Orlando and Las Vegas in Dec-2010.  GOL will use Boeing 767 aircraft on the route, which will operate under the Varig brand. It will be GOL's first venture into the U.S. market. GOL shares have gained 30% in the past two months.

Ryanair shares hit by UK investigation; analyst upbeat about 3Q results

Ryanair fell 1.57% to EUR4.13 after the UK Office of Fair Trading announced it is investigating the impact Ryanair’s 28.9% shareholding in Aer Lingus has on competition in the UK-Ireland market.

Analysts remain bullish about Ryanair’s 2QFY2011 interim results. After strong leads from British Airways, Air France-KLM and Lufthansa, consensus earnings figures compiled by Bloomberg show analysts reckon the LCC will deliver adjusted net income of EUR349 million for the second quarter and revenues of EUR1.26 billion.

Also in Europe, Air Berlin (-0.2%) was relatively stable ahead of its 3Q2010 earning release on 31-Oct-2010. The airline announced yesterday EBIT rose to EUR171.8 million, a 45% year-on-year increase.

Skymark expects profit growth in FY2011

Skymark Airlines shares declined 4.0%. The carrier, upon the release of its financial results for the six months ended Sep-2010, stated it expects to report a 109% increase in net profit to USD68 million in FY2011, with a recurring profit of USD107 million (+194% year-on-year) and an operating profit of USD112 million (+190%) on revenues of USD698 million (+36%).

The carrier reported a net profit of USD34 million in the six months ended 30-Sep-2010 (+38.5%) with an operating profit of USD72.7 million (+168%) and a "recurring profit" of USD34 million (+38.5%) on revenues of USD329 million (+26.6%).

Selected LCCs daily share price movements (% change): 29-Oct-2010