US low cost airline stocks gain on improved demand; SpiceJet sees a return in demand
The US share market gained on Tuesday to a near 14-month high, as debt-restructuring moves by Dubai World calmed financial fears and home sales increased for the ninth consecutive month in Nov-2009.
JP Morgan added that falling jet-fuel prices and improving demand should be helping airline shares, which have declined during a period when the Standard & Poors 500 index has remained roughly flat.
Allegiant Air to establish new base at Orlando International Airport
Allegiant Air also announced plans to establish a new base at Orlando International Airport commencing 01-Feb-2010, with the LCC to initially serve ten US cities from the base.
Allegiant currently operates service to Orlando from 31 US cities via Orlando-Sanford International Airport. The ten selected cities reflect a portion of the company's current operation at Sanford, which will move to Orlando International Airport.
Indian jet fuel prices reduced
“Demand is back”: SpiceJet
SpiceJet CCO, Samyukth Sridharan, today added that “demand is back” and the carrier is “optimistic” about its financial performance of the next two quarters.
According to Mr Sridharan, “if you look at the past four months, demand is back and that there is no reason to think otherwise. The past few months have been encouraging and we can be optimistic about the same financial performance in the next two quarters”.
The main Dubai share index, meanwhile, slumped more than 6% yesterday, despite efforts by Dubai World, the company at the heart of the crisis, to restructure approximately USD26 billion in debt.
See related article: Dubai World debt problems create airline uncertainty; interests wide and pervasive
Selected LCCs daily share price movements (% change): 01-Dec-09