Babcock & Brown Air shares leapt 10.1% in trading on Wednesday, breaching the USD10 per share barrier for the first time since Sep-2009. The increase is the largest single day jump since Nov-2009.
Meanwhile Expedia dropped 5.1%, following news that it will undergo a significant rebranding exercise and a worse than expected recovery forecast from its CEO.
The online travel agency and booking company will adopt a new logo and branding tagline, as part of a remake of its image that commenced in mid-2009.
Expedia’s shares have traded down over recent days, recent commentary from CEO, Dara Khosrowshahi, who forecast continued declines in margins for the company over the next three quarters. Investors were reportedly expecting bullish commentary on a travel recovery from the CEO.
Credit Suisse lowered its outlook for the online travel company from ‘Outperform’ to ‘Neutral’, citing continued external threats to the company’s performance.
Selected Aviation suppliers’ daily share price movements (% change): 06-Jan-2010