Virgin Blue’s share price remains under pressure on concerns about June quarter traffic, rising Australian domestic capacity and sharp pricing by low fare rivals. The stock fell 6.1% yesterday (18-May-2010) and is down 2.2% in early trade in Sydney today.
Its shares have slumped by around 28% over the past month and by 37% over the past two months. The falls are despite a positive news flow, including the Air New Zealand Tasman alliance, the Federal Government’s travel tender award and a smooth transition from Brett Godfrey to the highly capable John Borghetti as the airline’s new CEO.
Virgin Blue share price (AUD) over the past month
Qantas’ shares eased 0.8% yesterday, while Skywest fell heavily as the outlook for the resources sector (a key focus for the airline’s services) remains clouded by the Federal Government’s resources super profits tax.
Asia Pacific selected airlines daily share price movements (% change): 18-May-2010