Delta signs JV protocol agreement; US airline passenger revenue up in May-2010
North and South American airline stocks tumbled with the wider market on Tuesday (22-Jun-2010), as the Dow (-1.4%) declined on disappointing housing data. Previously owned home sales fell 2.2% in May-2010, pushing the most sensitive sectors, including industrial, energy, and consumer sectors, lower.
Delta Air Lines signs JV Protocol agreement with Air France and KLM
Delta Air Lines (-6.1%) suffered the biggest decline of the day. The carrier, along with Air France and KLM and their respective airline unions signed a six-way Joint Venture (JV) Protocol agreement during trading. The agreement covers requirements for the balance of work between airlines, as well as requirements that the airlines share operating and financial information regarding the JV with pilots unions.
The agreement establishes intent by the parties to provide a “seamless high quality travel experience”, enable the further development of the transatlantic route structure and increase the profitability of the JV, as well as to strengthen the respective airline hubs. A primary goal of the agreement is to promote the success and prosperity of the JV and all parties to this agreement.
See related CAPA Profile on Pilots.
Southwest launches fare sale
Southwest Airlines (-2.7%) launched a USD39 autumn fare sale, with Bestfares.com warning carriers have been finding it difficult to fill seats. See related report: US LCC stocks slip; Frontier climbing at Milwaukee; Bestfares.com warns of weak Autumn 2010 demand
Airline passenger revenue up in May-2010
Air Transport Association of America (ATA) reported during trading that passenger revenue rose 21% year-on-year in May-2010, the fifth consecutive month of revenue growth, led by a 36% increase in international passenger revenue. Passenger numbers rose 2% while unit costs rose 17% during the period. Meanwhile, cargo traffic rose 17% year-on-year in Apr-2010.
See related CAPA Profile: Financial Results
US airlines bump 220,000 passengers in 1Q2010
Also during trading, the US Department of Transportation reported that US airlines bumped 220,000 passengers from flights in 1Q2010, 25% more than in 1Q2009. 89% of the 1Q2010 bumpings were voluntary with passengers accepting compensation such as vouchers to switch flights while involuntary bumpings jumped by 37% from 1Q2009 to 1.73 for every 10,000 passengers.
North & South America selected airlines daily share price movements (% change): 22-Jun-2010