JetBlue shares hit two-month high; Southwest may resume fleet expansion
Shares in JetBlue hit an eight-week high as Soleil Securities raised its rating on the stock from hold to buy, projecting that fare increases by the carrier would outpace rising fuel costs. Shares in the carrier were up 5.1% on Friday, with US LCC stocks trading better through the day.
Southwest Airlines may start to expand its fleet again in 2013, with the carrier’s most likely choice being B737-800s according to a report from Bloomberg. Southwest slowed its fleet growth in 2009 as travel demand fell, reversing a tradition of annual expansion. CEO Gary Kelly stated the carrier is attempting to restore profitability to the point “where it is financially justified to commit to buying aircraft”.
VivaColombia announced plans to start operating in Colombia in 2012. The LCC will reportedly cover high-traffic routes between Cartagena, Cali, Medellin, Bogota, Barranquilla and Bucaramanga. The new company is spearheaded by Declan Ryan, owner of Ryanair, as well as other business groups IAMSA, Grupo Fast and Grupo Bolivar.
Selected PEA daily share price movements (% change): 28-Mar-2011