US low cost airline stocks gain on improved demand; SpiceJet sees a return in demand
US airline stocks also gained yesterday, lifted by an investor note from JP Morgan suggesting investors have been overlooking the sector.
JP Morgan added that falling jet-fuel prices and improving demand should be helping airline shares, which have declined during a period when the Standard & Poors 500 index has remained roughly flat.
Southwest, JetBlue, Allegiant and AirTran shares gained 1.6%, 2.4%. 3.1% and 8.3%, respectively.
Allegiant Air to establish new base at Orlando International Airport
Allegiant Air also announced plans to establish a new base at Orlando International Airport commencing 01-Feb-2010, with the LCC to initially serve ten US cities from the base.
Allegiant currently operates service to Orlando from 31 US cities via Orlando-Sanford International Airport. The ten selected cities reflect a portion of the company's current operation at Sanford, which will move to Orlando International Airport.
Indian jet fuel prices reduced
In India, SpiceJet gained 5.8% yesterday, as Indian Oil Corp (IOC), Bharat Petroleum Corp and Hindustan Petroleum reduced Indian jet fuel prices by approximately 1.1%, effective 01-Dec-2009.
"Demand is back": SpiceJet
SpiceJet CCO, Samyukth Sridharan, today added that "demand is back" and the carrier is "optimistic" about its financial performance of the next two quarters.
According to Mr Sridharan, "if you look at the past four months, demand is back and that there is no reason to think otherwise. The past few months have been encouraging and we can be optimistic about the same financial performance in the next two quarters".
Dubai share index slumps again, on Dubai World fallout
The main Dubai share index, meanwhile, slumped more than 6% yesterday, despite efforts by Dubai World, the company at the heart of the crisis, to restructure approximately USD26 billion in debt.
Among the Middle East LCCs, AirArabia's shares gained 2.1%, recovering some recent lost ground, while Jazeera Airways slumped 5.3%.
See related article: Dubai World debt problems create airline uncertainty; interests wide and pervasive
Selected LCCs daily share price movements (% change): 01-Dec-09
