The AMEX Airline Index was up 2.1% on Thursday (08-Oct-09), with the majority of North and South American carriers’ stocks inching upwards.
Stocks were assist by gains in the broader market, with the Dow making a modest gain, up 0.6%. The rise in airline stocks came despite a 3.1% jump in oil prices, to USD71.69.
Southwest (+5.7%) led the gains yesterday, after Jesup & Lamont raised its 3Q2009 forecast for the carrier from a loss of USD0.08 per share to a profit of USD0.02 per share. For the full year, its EPS estimate, excluding extraordinary items, is for a profit of USD0.12 per share.
For 2010, Jesup & Lamont’s preliminary estimate is for EPS of USD0.42 per share. According to the analysts, even using a multiple on earnings that is a premium to the group, "the shares seem expensive at current prices", and it maintained a “sell” rating on Southwest’s stock.
Delta up despite expected loss for 3Q2009
Delta Air Lines (+4.1%) was also up at the close of trade yesterday, despite a Dow Jones report noting analysts expect the carrier to post a USD0.07 per share loss on USD7.6 billion in revenue for 3Q2009. The consensus expectation comes after Delta stated in Sep-2009 that it does not expect to post a profit for FY2009. However, the carrier has built up solid capital reserves to weather the remainder of the year.
LAN (+1.0%) stock gained slightly, after the carrier reported a 1.8 ppts increase in load factor, to 78.8%, as passenger numbers rose 15.1%. The improved load factor came off an 11.9% increase in traffic (RPMs) and a 9.3% increase in capacity (ASMs).
North & South America selected airlines daily share price movements (% change): 08-Oct-09
Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.