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United Airlines estimates consolidated PRASM of 17-19%; AirTran loses USD5-6 million in Feb-2010

North and South America carriers’ shares tumbled on Monday (08-Feb-2010), as oil prices rose again, up 0.5%, to USD 81.87. The Dow (-0.1%) slipped as investors continued to assess the strength of the US economic recovery, following better than expected US jobs data on Friday.

AirTran states Feb-2010 storms affected revenues by USD5-6 million

AirTran (-3.3%) slid after the carrier stated the Feb-2010 winter storms affected revenues by USD5-6 million. However, CFO Arne Haak stated first quarter yields for the industry will show "great improvement" over the dismal 2009 first quarter. See related article: Weather costs keep on mounting for US airlines

United Airlines (-3.9%) shares also fell, despite estimating consolidated passenger revenue per available seat mile (PRASM) increased 17.0% to 19.0% year-on-year. The carrier added it has estimated to have lost USD40 million due to the Feb-2010 storms.

Allegiant expecting 4% improvement in RASM for Feb-2010

Allegiant (+2.7%) was meanwhile the day’s biggest gainer after stating it expects a 4% RASM improvement in Feb-2010, with a 2% increase in TRASM and a 7% upward movement in the total fare. The carrier also stated its plans to launch services to Hawaii are a "good fit", as it is the “largest major US leisure market untapped by Allegiant” and the market has "significant" ancillary revenue opportunities. See related article: Allegiant's Hawaii move a good one, but not until next year

In other news, fresh analysis from Robert Herbst shows that despite the global financial downturn, only about a billion available seat miles disappeared in the latest recession, translating to a big gain in share for the LCCs. See related article: Capacity did not decline much for US airline industry in recession

Also featured in today’s America Airline Daily:

North & South America selected airlines daily share price movements (% change):  08-Mar-2010