Loading

US airline shares surge

Analysis

Shares in most US carriers rose sharply on Tuesday, led by an 11.8% jump in US Airways shares, as crude oil futures eased by nearly USD1 per barrel. Delta Air Lines shares rose 9.7%, with most US carriers up by more than 5%. Latin American airlines' shares also rallied but not as strongly. Copa and LAN both reported strong Feb-2011 traffic.

Copa Holdings reported the following consolidated traffic highlights in Feb-2011:

LAN Airlines reported the following traffic highlights in Feb-2011:

  • Passenger numbers: 1.8 million, +28.8% year-on-year;
    • Domestic: 1.2 million, +36.8%;
    • International: 577,000, +14.9%;
  • Passenger load factor: 82.3%, +0.2 ppt;
    • Domestic: 79.9%, -3.2 ppts;
    • International: 83.5%, +2.0 ppts;
  • Cargo load factor: 67.2%, -1.2 ppts.

Mexicana announced it is in talks with potential new investors and hopes to make its return by 18-Apr-2011. The bankrupt carrier has reportedly had proposals from five different groups including TG Group, BMC Financial, Avanza Capital and Ivan Varona. It reportedly has until Aug-2011 to decide on an investor.

Selected AAD daily share price movements (% change): 8-Mar-2011

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