Loading

SAS passenger numbers rising; Lufthansa price target increased

Analysis

European markets were down for a second consecutive day on 23-Jun-2010, pushing airline shares lower. Markets were down after Fitch Ratings decreased BNP Paribas' long-term debt rating to AA- from AA, causing a drop in banking sector shares.

Markets also fell in reaction to a decline in US stocks the day before. In key markets, UK's FTSE (-1.3%), France's CAC (-1.7%) and Germany's DAX (-1.0%) all ended the session lower.

SAS passenger numbers rising

SAS (+2.9%) shares rose after the carrier stated passenger numbers have started to rise. As a result, the carrier plans to increase capacity on long-haul services by 12% after summer 2010 by placing one Airbus aircraft into operation. Services include New York, Chicago, Bangkok and Dubai.

See related CAPA Profile: Route Changes

Lufthansa price target increased

Lufthansa (+2.3%) also gained after Citi increased its price target for the carrier from EUR15.20 to EUR19.00. The analysts stated underlying earning forecasts from Lufthansa have "little changed" - despite EUR200 million in volcanic ash costs - implying the carrier is recovering from the global financial downturn. Citi expects trading to be "strong", particularly cargo and long-haul operations.

See related CAPA Profile: Outlook, Forecasts, Guidance

Elsewhere, Dart Group (+1.4%), Aer Lingus (+1.3%), easyJet (+1.2%) and TUI Travel (+0.7%) rounded out the airlines that rose for the day. Turkish Airlines (-2.9%) was the day's biggest decliner, moving lower with the Istanbul Stock Exchange (-1.9%). Aeroflot (-2.9%) and Vueling (-2.6%) were also down.

Europe selected airlines daily share price movements (% change): 23-Jun-2010

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More