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US Airways reports 13% improvement in PRASM; Alaska Air down despite improved traffic

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.

See related report: Republic's unusual quarterly loss was partially “self-inflicted”, but sees “strengthening trends”

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

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North & South America selected airlines daily share price movements (% change): 05-May-2010