Delta’s legal case dismissed; Hawaiian looking to expand in Asia; GOL and TAM rise
North and South American airline stocks soared higher on Wednesday (01-Dec-2010) following a positive jobs report in the US and news China reported factory production rose to a seven-month high in Nov-2010. GOL (+3.4%) and FedEx (+3.2%) led the charge.
Delta legal case dismissed
Delta Air Lines (+1.5%) rose after Virgin Atlantic’s court case against the carrier was dismissed during the day. Virgin has claimed Delta’s seats, designed by Premium Aircraft Interiors Group Ltd, infringed Virgin’s patent. The court ruled Virgin “has no real prospect of establishing infringement”.
Brazilian carriers GOL (+3.4%) and TAM (+3.1%) were among the biggest gainers of the day after Brazil’s Bovespa (+2.4%) closed higher on hopes the country’s Brazilian industrial output data is to report steady year-on-year growth when it is released on Thursday (02-Dec-2010). Investors expect Brazil’s economy to grow by at least 7% this year.
Hawaiian Airlines looks to expand in Asia
Hawaiian Airlines (+1.8%) CEO Mark Dunkerley stated during trading that the carrier, which commenced its first services to Tokyo Haneda last month, may add another Asian destination in 2011, possibly in Japan. The destination would be in addition to service the carrier plans to launch service to Seoul Incheon on 12-Jan-2010. The carrier is also including a further expansion in South Korea for 2011. The Haneda service connecting Honolulu so far are “working out better than we anticipated", according to Mr Dunkerley, who stated that load factors are at more than 80%. He added that Haneda enjoys a fare premium over Narita.
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Elsewhere, Republic Airways (-1.7%) was the only carrier to decline for the session.
North & South America selected airlines daily share price movements (% change): 01-Dec-2010