US Airways: One last big deal for US airline consolidation
US Airways CEO Doug Parker observed that he sees "one big deal left" as a merger prospect in the US and that it would involve his carrier. Mr Parker stated that if one of the big three carriers - United Continental, Delta Air Lines or American Airlines - wanted to make a deal, US Airways is the last major carrier left. Mr Parker wants his company to be well positioned should the merger opportunity arise, however believes US Airways could also continue as a stand-alone.
- US Airways CEO Doug Parker believes there is one major merger opportunity left in the US airline industry, and his company is well positioned for it.
- US airline stocks mostly closed lower, with Republic Airways and United Continental experiencing significant declines.
- Air Canada reported a 4.2% increase in revenue passenger miles in March 2011, with growth in the US, Asia Pacific, and Latin America.
- Air Canada's passenger load factor decreased by 2.6 percentage points, with declines in all regions except the US.
- Air Canada is encouraged by advance bookings and expects EBITDAR levels for the first half of 2011 to be similar to the previous year.
- Overall, there were mixed movements in selected Americas airline share prices on April 6, 2011.
US airline stocks mostly closed lower, led by Republic Airways, which fell 3% and United Continental, which was 2.4% lower.
Air Canada reported the following traffic highlights in Mar-2011:
- Revenue passenger miles: +4.2% year-on-year;
- Domestic: -1.2%;
- US: +11.8%;
- Europe: -2.3%;
- Asia Pacific: +10%;
- Latin America and other: +7.8%;
- Passenger load factor: 79.5%, -2.6 ppts;
- Domestic: 80%, -1.5 ppts;
- US: 80.3%, +0.3 ppt;
- Europe: 75.5%, -6.1 ppts;
- Asia Pacific: 83.3%, -6.8 ppts;
- Latin America and other: 79.1%, +0.3 ppt.
Air Canada stated it has been encouraged by advance bookings in all sectors, including the Atlantic and Pacific. The market has been absorbing the fare increases and surcharges implemented due to higher fuel costs. It expects EBITDAR levels for the1H2011 to be approximately at the same level as 1H2010.
Selected Americas airline share price movements (% change): 06-Apr-2011
