United and Delta bonds trading at or above par; LAN and TAM report improvements in load factor


A slight majority of North and South American carriers’ stocks rose on Friday (12-Mar-2010), as a gain in oil prices (+1.1%), to USD81.24, unsettled investors. The Dow (+0.1%) rose marginally on news retail sales unexpectedly rose 0.3% in Feb-2010. However, the news was coupled with downward revisions of the previous month’s figures.

United and Delta bonds trading at or above par

United Airlines (+2.7%) was one of the day’s biggest gainers, after RBS Securities stated the day prior that bonds issued in 2008 by United and Delta Air Lines (-1.2%) are trading at or above par for the first time, as Business travel demand improves. According to SmarTrend, the carrier is currently above its 50-day moving average of USD14.18 and 200-day moving average of USD8.27.

American Airlines (-2.1%) meanwhile fell, as did Expressjet (-4.2%).

LAN and TAM report load factor improvements

LAN (+1.4%) gained after reporting a 1.9 ppts year-on-year improvement in load factor for Feb-2010, to 81.9%. Load factor was up on the back of a 9.6% rise in passenger traffic (RPMs) and a 7.1% increase in capacity for the month.

Meanwhile, competitor, TAM (-0.1%) slipped despite reporting 8.2 ppts and 6.1 ppts year-on-year increases in domestic and international load factor, respectively, for Feb-2010. The rise in domestic load factor was the result of a 21.7% improvement in traffic and 7.2% increase in capacity, while the rise in international load factor rose on a 10.1% improvement in traffic and 1.3% rise in capacity. Both domestic and international yields remained flat month-over-month in accordance with the rational scenario and Company’s expectation.

Copa stock on the way up

Copa (+3.0%) was also up. LearningMarkets stated Copa’s stock has risen 13.2% in the month since reporting a net income of USS240.4 million, or diluted EPS of USD5.50 for FY2009 on 10-Feb-2010. Furthermore, the stock has outperformed North and South American airline shares by 22.9% during that period. 

Also in today’s America Airline Daily:

North & South America selected airlines daily share price movements (% change):  12-Mar-2010

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More