TAM reports net loss for 1Q2010; Copa takes delivery of new aircraft; GOL down


North American carriers were mostly up on Monday (17-May-2010), while South American carriers' shares slipped with wider markets. The Dow (+0.1%) rose slightly, rebounding in late trading on news of a number of proposed mergers.

  • TAM reports a net loss of USD32.3 million for 1Q2010, with operating revenue slipping 0.5% year-on-year.
  • TAM's load factor improved by 5.0 ppts to 72.1%, but total revenue per ASK declined by 5.7%.
  • TAM plans to increase capacity by 12% in FY2010, with a focus on domestic routes.
  • GOL's net profit for 1Q2010 declined by 62.1% year-on-year.
  • Copa Airlines takes delivery of two new B737-800 aircraft as part of its expansion plans.
  • JetBlue and Allegiant were the top gainers, while Air Canada experienced a sharp decline in share price.

In Latin American markets, Brazil's Bovespa (-0.9%) declined on worldwide concern over Europe's debt issues. The expiry of a number of options on some blue-chip stocks also sent the market lower. Chile's IPSA (+0.3%) gained slightly, tracking the rebounding US market late in trading.

TAM reports net loss for 1Q2010

TAM (-5.1%) shares slumped after the carrier reported the day before a net loss of USD32.3 million for the three months ended 31-Mar-2010, compared with a net profit of USD14.3 million in the previous corresponding period. The decline came as operating revenue slipped 0.5% year-on-year, to USD1,446 million. Total operating costs rose 0.9% to USD1,393 million.

The newest member of the Star Alliance reported a 5.0 ppts improvement in load factor for the quarter, to 72.1%, as passenger numbers rose 13.2%, to 8.3 million. However, total revenue per ASK declined 5.7%, to USD 8.50 cents. Total yields were also down, declining 11.8%, to USD 12.27 cents.

For FY2010, TAM expects to increase capacity (ASKs) by 12% year-on-year, led by a 14% increase in domestic capacity. International capacity is to be increased by 8%. The carrier expects this increase to result in a load factor of 69% for the year, with 66% for domestic and 75% for international.

During trading, the carrier also stated it is planning to launch Rio de Janeiro-London service in Aug/Sep-2010, with A340 equipment. The carrier stated it is still in talks for slots at London Heathrow Airport. British Airways is the only other carrier operating on the route at present.

GOL down with Bovespa

GOL (-1.6%) was also down, moving lower with the Bovespa. The carrier last week reported a net profit of USD12.9 million for the three months ended 31-Mar-2010, a year-on-year decline of 62.1%.

Copa takes delivery of new aircraft as part of expansion plans

Elsewhere, Copa Holdings was flat. Copa Airlines announced during trading that it took delivery of two new B737-800 aircraft as part of its ongoing fleet and network expansion programme. With these two deliveries, Copa has now received five of the eight aircraft scheduled for delivery in 2010.

Elsewhere, JetBlue (+3.0%) and Allegiant (+2.7%) were the biggest gainers of the day, while Air Canada (-5.3%) declined sharply.

America Airline Daily is your one-stop shop for news, data and analysis from the dynamic North American, Caribbean and Latin American aviation markets. Other stories featured in today's issue include:

  • Air Transport Association challenges NMB final rule on union representation;
  • American Airlines, Continental Airlines and ATA report costs of lobbying in 1Q2010;
  • Frontier ends partnership with AirTran;
  • Spirit Airlines planning to cut 1,583 jobs if pilots strike.

North & South America selected airlines daily share price movements (% change): 17-May-2010

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