US airlines shares jump as fuel dips under USD100 per barrel

WTI crude has traded under USD100 per barrel for the first time since Mar-2011, sending US airline shares spiking. American Airlines was the big mover, up 7.5%, while Delta Air Lines shares gained 7.1%. Latin American carriers also traded strongly, with Copa up 7.2%.

Meanwhile, Air Canada has forecast that higher fuel costs could add as much as CAD800 million to its costs in 2011. Fuel costs in for 1Q2011 were up 20% year-on-year.

Air Canada financial highlights for the three months ended 31-Mar-2011:

  • Operating revenue: USD2850 million, +9.3% year-on-year;
  • Operating costs: USD2918 million, +6%;
    • Fuel: USD768.1 million, +20%;
    • Labour: USD523.8 million, +7%;
  • Operating profit (loss): (USD68.3 million), compared with a loss of USD140.8 million in p-c-p;
  • Net profit (loss): (USD19.7 million), compared with a loss of USD115.9 million in p-c-p;
  • Passenger traffic (RPMs): +5.7%;
  • Passenger load factor: 77.9%, -1.5 ppt;
  • Passenger yield: USD 19.25 cents, +4.2%;
  • Passenger revenue per ASM: USD 15.01 cents, +2.2%;
  • Revenue per ASM: USD 18.01 cents, +1.5%;
  • Operating cost per ASM: USD 18.43 cents, -1.4%;
  • Cost per ASM excl fuel: USD 13.56 cents, -5.3%;
  • 2Q2011 forecast:
    • Capacity (ASMs): +5.5% to +6.5% year-on-year;
    • Cost per ASM excl fuel: -0.5% to -1.5%;
  • FY2011 forecast:
    • Capacity (ASMs): +3.5% to +4.5%;
    • Cost per ASM excl fuel: -2.0%. [more

Selected AAD daily share price movements (% change): 05-May-2011