FAA to keep an eye on American Airlines; Air Canada, Fedex slips
North and South American carriers’ stocks continued to suffer on the final day of trading for 2009 (31-Dec-2009), following the failed terrorist attack on a Northwest service from Detroit via Amsterdam earlier in the week. As a result, the AMEX Airline Index fell 0.32%, not helped by a decline in the wider marker, with the Dow closing 1.1% lower at the end of trading.
FAA to keep an eye on American Airlines following safety issues
The Federal Aviation Administration stated after trading on Friday that it is increasing safety oversight of American Airlines (-0.5%) and will conduct a review of three incidents that occurred during Dec-2009. The FAA and American will work together if corrective action is required.
Fellow full service carrier, United Airlines (+0.9%) continued to make gains off the back of its announcement the day prior of plans to offer USD500 million of senior secured notes due in 2013. Republic Airways (+2.2%) also made gains, while LCC, GOL (+0.6%) was up with the Bovespa (+0.4%).
Hodges Capital Management forecasts improvement in airline stocks in 2010
Hodges Capital Management forecasts US airline stocks could appreciate approximately 50% in the next 12 months from their current levels as carriers see improved demand from Business passengers as the economy recovers. Hodges Capital has investments in Delta Air Lines (shares +0.1% last Friday), Continental Airlines (-0.2%) and Southwest Airlines (+0.4%).
North & South America selected airlines daily share price movements (% change): 31-Dec-09