LAN and TAM drop, GOL gains
Latin American airline stocks were mixed yesterday, led lower by LAN and TAM (both down 1.8%).
LAN's stock has fallen since it announced at the start of the week that it would suspend non-stop Santiago-Toronto service in early-Apr-2011 due to rising crude oil prices. In Feb-2011, the company stated it will increase ticket prices for its international routes between 8% and 12%.
Banco Santander SA stated jet fuel costs have the potential to “significantly impact” the profitability of Latin American airlines. Zacks Equity Research reiterated (28-Mar-2011) its neutral recommendation on GOL. Its shares were virtually flat.
Selected American airlines daily share price movements (% change): 28-Mar-2011