ExpressJet reaches new 52-week high; American Airlines wins court case
North and South American airline stocks gained on Tuesday (31-Aug-2010) on more positive economic news in the US, as home prices and consumer confidence data rose and the US Federal Reserve approved China Investment Corp’s plan to purchase up to a 10% stake in Morgan Stanley. However, the Dow (+0.1%) gained only marginally for the day, as the Federal Reserve stated a recovery in the US economy has been slower than expected.
ExpressJet reaches new 52-week high
ExpressJet (+0.3%) rose to a new 52-week high of USD6.67 during trading, with approximately 192,000 shares traded hands over the day. According to SmarTrend, the airline is currently trading above its 50-day moving average of USD4.24. The analysts reiterated their "buy" rating for the stock.
American Airlines wins court case
More positively, the US Federal Court ruled during trading that American did not violate its contract with the Allied Pilots Association by using non-union pilots for commuter services. Under a collective bargaining agreement with the Allied Pilots Association, American Airlines maintains a "pilots seniority list" to determine flying assignments.
See related CAPA Profile: Pilots
American Airlines also announced plans to retire its B767 equipment once the carrier takes delivery of B787 aircraft in 2014. The carrier also indicated B787 equipment could be allocated on New York JFK-London Heathrow services.
Boeing confirmed last week that it now expects delivery of the first B787 in the middle of 1Q2011, with the manufacturer commenting that the "delivery date revision follows an assessment of the availability of an engine needed for the final phases of flight test this [autumn]".
See related CAPA Profile: Fleets
Elsewhere, United Airlines (+2.4%) and Continental Airlines (+2.1%) continued to gain as they get closer to gaining full approval for their merger agreement. Zachs Equity Research stated during trading that it maintains a "neutral" recommendation of United’s stock.
North & South America selected airlines daily share price movements (% change): 31-Aug-2010