Air Berlin shares gain on 2Q2009 profitability; Allegiant revises 2H2009 capacity
Air Berlin's shares gained 1.8% yesterday, as the carrier reported a better-than-expected operating profit in 2Q2009. The carrier reported net profit of EUR7 million in the quarter (-9% year-on-year), with EBITDAR and EBIT levels up by 2.5% and 33.3%, respectively, to EUR135 million and EUR18 million. The carrier is scheduled to release its full financial results later today.
Allegiant upgrades capacity plans
In the US, Allegiant upwardly revised its 3Q2009 departure and capacity (ASM) growth plans to approximately 35% and 40% (from previous guidance of approximately 30% and 35%), respectively, with 4Q2009 growth of approximately 12% and 18% expected, lower than the previously expected guidance of 20% growth in both areas. Allegiant’s shares fell 3.6% yesterday.
Also in North America, WestJet's shares fell 4.5%, as the carrier announced plans to slow its expansion due to the ongoing weak economic conditions. The Canadian LCC signed an agreement with Boeing to reschedule the delivery of 16 aircraft and announced the purchase of an additional 14 B737NG aircraft, for delivery in 2015 and 2016. WestJet was previously expected to grow its fleet size to 121 aircraft by 2013, with the carrier now planning to end the year with between 108 and 111 aircraft. With the revised plan, WestJet now expects capacity growth of 5-10% in 2010.
Selected LCCs daily share price movements (% change): 24-Aug-09