My Account Menu

CAPA Login

Register to trial CAPA Membership!

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

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.