European shares climbed for the third consecutive day on Tuesday (02-Mar-2010), reaching a near six-week high. Banking and auto maker shares were the biggest gainers, ahead of the release of new austerity measures by Greece to handle its debt issues. As a result, the majority of European carriers’ shares rose again.
Lufthansa (+3.6%) gained after reporting a better than expected preliminary net loss of USD112 million for the 12 months ended 31-Dec-2009, compared to a profit of EUR542 million in the previous corresponding period. Operating profit for the period totalled EUR130 million, compared to a profit of EUR1,300 million in the previous corresponding period, while revenue fell 10% year-on-year, to EUR22,300 million. Lufthansa added its Executive Board will propose not to distribute a dividend as a result of the net loss. The carrier is scheduled to release its full financial results for the period on 11-Mar-2010.
DZ Bank analyst, Robert Czerwensky, stated the carrier’s result, despite a weak operating environment, was a sign of an improving market.
airBerlin strikes soon
airBerlin (-0.8%) slipped after The Cockpit Union stated it plans to stage three-hour walkouts at the carrier and its LTU subsidiary "in the coming days", in a dispute over working conditions. Cockpit stated it is seeking a medium-term harmonisation of conditions at Air Berlin with what it says are better conditions at the long-haul unit, LTU.
British Airways benefits from improved results of competitors
British Airways surged 6.2% to its highest level since Nov-2009 and was the UK FTSE’s biggest gainer.
For more of the latest on the European aviation industry, why not subscribe to Europe Airline Daily? Other stories in today’s issue include:
- bmi to take over more of Lufthansa’s UK routes;
- SAS CEO states carrier likely to be sold once it recovers from financial issues;
- Air Moldova pax up 11% in Feb-2010;
- Hungarian Government to submit its Malev rescue plan to the European Commission.
Europe selected airlines daily share price movements (% change): 02-Mar-2010
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