My Account Menu

CAPA Login


Register to trial CAPA Membership!

European airline stocks slide on US market jitters

25-Sep-2009

European stocks declined yesterday, as the US Federal Reserve reduced emergency funding programmes and home sales in the US declined by a worse than expected 2.7% in Aug-2009, prompting further concerns over the economic recovery.

The London FSTE closed 1.17% lower, while the Paris CAC Index dropped 1.66%. The Frankfurt DAX, which lost 1.70%, was further affected by the Ifo Institute’s report that business confidence did not meet forecast growth.

Citigroup downgraded several European carriers yesterday, including British Airways (shares down 4.3%) from “buy” to “hold” and SAS (-3.3%) from “hold” to “sell”. Air France-KLM’s (-3.5%) rating was maintained at “sell”, while UBS placed a "buy" rating on Lufthansa’s shares.

Elsewhere, Finnair rose (+4.4%), Austrian jumped (+3.0), while Aer Lingus gained (+1.0%). Ryanair CEO, Michael O’Leary stated it is “highly unlikely” the carrier will make a third bid for Aer Lingus, to increase its current stake from 29.0%.

Europe selected airlines daily share price movements (% change): 24-Sep-2009


Want more analysis like this? CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find out more and take a free trial.