The majority of North and South American carriers’ stocks were down again on Wednesday (05-May-2010) as global markets continued to fall on concerns debt issues in Europe will hamper economic recovery worldwide. The Dow (-0.5%) ended trading lower, despite news of a third consecutive monthly rise in employment in the private sector.
However, another decline in oil prices (-2.5%), to USD80.71, weakened losses for airlines. The AMEX Airline Index ended the day down 0.6%.
Republic Airways down on disappointing financial results
Republic Airways (-6.7%) stock took the largest tumble, after reporting a wider than expected net loss for 1Q2010 of USD36.5 million.
The decline was despite the carrier reporting a 5.0 ppts year-on-year improvement for Apr-2010, to 80%. Passenger numbers rose 59%, to 2.7 million, with the inclusion of Midwest Airlines and Frontier Airways.
Alaska Air down despite improved traffic
Alaska Air (-0.4%) was also down slightly, despite the group reporting improved passenger numbers for Apr-2010. Alaska Airlines reported a 1.7% year-on-year improvement in passenger numbers, to 1.3 million, while load factor rose 4.0 ppts, to 82.9%. Horizon Air also witnesses improved passenger numbers, up 1.4%, to 538,000, as load factor rose 2.6 ppts, to 71.8%.
US Airways reports 13% improvement in PRASM
US Airways (+1.0%) stocks rose after the carrier stated consolidated (mainline and Express) passenger revenue per available seat mile (PRASM) increased approximately 13% year-on-year while total RASM increased approximately 14%. The carrier stated the revenue environment continues to improve with strengthening corporate demand and overall booked yields.
However, US Airways stated passenger numbers declined 4.0% the month, to 4.3 million. The decline was led by a 5.2% fall in Atlantic passengers. Passenger load factor also fell, down 2.1 ppts, to 82.7%. However, Atlantic loads rose 1.8 ppts, to 81.0%, despite the decline in passenger numbers.
Elsewhere, LCCs AirTran (-3.0%) and WestJet (-1.8%) declined after also reporting traffic results for Apr-2010.
See related report: Record load factor and traffic growth for AirTran and WestJet in Apr-2010
America Airline Daily is your one-stop shop for news, data and analysis from the dynamic North American, Caribbean and Latin American aviation markets. Other stories featured in today’s issue include:
- American Airlines and the Transport Workers Union reach tentative agreement;
- Frontier Airlines adds Gogo internet service on Embraer fleet;
- JetBlue to announce additional interline agreement within weeks;
- US’ Department of Homeland Security orders carriers to check no-fly list more regularly;
- Porter Airlines adds ninth daily service between Toronto and New York;
- WestJet and Cathay Pacific sign interline agreement.
North & South America selected airlines daily share price movements (% change): 05-May-2010