Weak US markets pull down airline shares
Weakness across US markets have pulled North and South American airline shares down, with US and Brazilian carriers among the worst affected despite an easing of oil prices below USD100 per barrel. Republic Airways shares fell 4.3%, US Airways was down 3.8% and American Airlines lost 3.7%, while GOL was also 3.7% lower and TAM lost 3.5%.
- Revenue passenger miles: +5% year-on-year;
- Passenger load factor: 82.2%, +0.2 ppt
- Revenue passenger miles: +3.1% year-on-year;
- Passenger load factor: 74.8%, -2.9 ppts.
Air Canada flight attendants have asked for a federal conciliator to assist in contract negotiations. The Canadian Union of Public Employees (CUPE), the union representing 6800 Air Canada flight attendants, filed the request with the Federal Mediation and Conciliation Services after reaching an impasse with management on several issues. The collective agreement between the flight attendants and Air Canada expired Dec-2010. Negotiations for a new contract have been underway since 06-Apr-2011 but so far a settlement has eluded the parties.
- Passenger numbers: 464,983, -3.7% year-on-year;
- Passenger load factor: 88.1%, +0.2 ppt;
- Flights: 3,785, -3.7%;
- Scheduled revenue per ASM: +23.9%;
- Scheduled revenue per ASM: 34.6% to 35%.
American Airlines announced (06-Jun-2011) the following traffic highlights in May-2011:
- Passenger numbers: 7.4 million, -0.3% year-on-year;
- Revenue passenger miles: +1.3%;
- Passenger load factor: 83.3%, +0.5 ppt;
Selected Americas airlines share price movements (% change): 6-Jun-2011