Maxjet Suspends Trading As Losses Keep Growing
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Saturday, December 8, 2007
Maxjet Airways, the all-business-class airline based in Dulles, suspended trading its stock yesterday pending an announcement clarifying its financial position.
The airline, which is listed on the Alternative Investment Market, a sub-market of the London Stock Exchange that allows smaller companies to list shares under a looser regulatory framework, did not provide any additional information about the move.
Maxjet spokeswoman Penny Moss said flights between London and Maxjet's three U.S. hubs -- New York, Las Vegas and Los Angeles -- will not be affected by the suspension.
"It's just business as usual," said Moss, who works out of Dulles.
Since the company's initial public offering in June, the airline's stock has lost half its value. Shares were trading at $1.49 at the time of the suspension.
Maxjet's loss has grown to $49.5 million in the first six months of this year, from $30.4 million during the comparable period in 2006, according to regulatory filings.
The airline's balance sheet was affected by increased operating expenses, reflecting additional airplane leases to expand its fleet. Fuel costs for most airlines have also jumped in recent months.
In late October, Maxjet stopped all flights to and from Washington Dulles International Airport without any indication of when they might resume. Maxjet shifted its resources to building its affordable, all-business-class niche in the remaining cities it serves.
The U.S.-to-London route is among the most profitable and competitive routes in the airline industry, aviation analysts said. Maxjet competes with similar business-class airlines, such as Silverjet and Eos, as well as business frequent-flyer clubs at legacy carriers such as United Airlines and British Airways.
Maxjet reported a 47 percent increase in passengers and a 24 percent jump in the number of available seats in November compared with November of last year. The Bureau of Transportation Statistic reports that Maxjet planes are about 63 percent full on average. Average occupancy for legacy carriers is about 70 percent.
