Ryanair in airport battles. Vueling expects improved profits in 2010. Norwegian unprofitable
Ryanair reportedly plans to suspend service from Budapest Ferihegy and Prague Ruzyne International Airports after they separately refused requests to lower charges for the carrier. The LCC plans to suspend services from Prague to Birmingham, Dublin, Hahn and Stockholm by Oct-2010 and separately stated that if Budapest Ferihegy reduced charges, it would launch 25 new routes from there. Shares in the LCC advanced 1.9% yesterday.
Shares in Spanish LCC, Vueling, gained 4.1% yesterday. The carrier, upon the release of its financial results late last week for the three months ended Mar-2010 (1Q2010), maintained its guidance for an improved net profit in 2010. The carrier previously guided that it "expects to report even better results in 2010 than in 2009", noting that more than 60% of the merger synergies between Vueling and Iberia's LCC subsidiary, clickair, would be experienced in 2010. See related report: Vueling's 2010 expected to beat 2009 results, but it won't be smooth flying
Also gaining yesterday was Norwegian (shares up 2.2%). Scandinavia's largest LCC also released its first quarter financial results last week, reporting a 14.8% increase in 1Q2010 revenue, driven by ancillary revenue growth and double-digit passenger increases in the period. However, the carrier was unprofitable on the EBITDAR, EBITDA, EBIT, EBT and net levels in the quarter, which is the carrier's seasonally weakest quarter. See related report: Norwegian remains in red 1Q2010 despite strong passenger growth. Talks of long-haul
Also gaining yesterday was Air Berlin (+3.8%) and easyJet (+0.7%), while shares in Dart Group (Jet2.com parent company) decreased 2.1% yesterday.
Selected LCCs daily share price movements (% change): 29-Apr-2010
