European airline shares slumped with wider markets on Tuesday (25-May-2010), which fell to their lowest point in nine months. The banking sector pushed markets lower, due to a rise in interbank lending rates and continued concern over European austerity measures.
Vueling only gainer of the day
Vueling (+1.9%) was the only European carrier to witness a rise in its share price for the day, despite a drop in the Spanish IGBM (-3.1%). During trading, the International Monetary Fund called on Spain to make more progress in overhauling its ailing banks. Four Spanish savings banks yesterday submitted a proposal to the nation’s central bank to merge their businesses.
Vueling recently reported an 86.4% year-on-year improvement in passenger numbers, to 909,000. However, load factor was down 2.1 ppts for the period, 73.3%.
Aeroflot reports 14.2 ppts improvement in loads
Aeroflot (-5.4%) declined despite announcing a 14.2 ppts year-on-year rise in load factor for Apr-2010, to 76.0%. Passenger numbers were also up, gaining 27.4%, to 794,100, led by a 31.8% rise in international and 20.9% rise in domestic passenger numbers.
Freight also improved, with the carrier reporting a 13.7 ppts gain in cargo load factor, to 64.5%.
easyJet sales increasing with British Airways strike action
easyJet (-2.6%) also slipped, despite reporting a “substantial” increase in demand due to the striking cabin crew strike at British Airways (-2.7%). Approximately 250,000 of the 500,000 easyJet seats available from the UK during the scheduled strike dates have been sold since the industrial action was initially proposed.
- AerCap signs agreement to sell 6 A320 aircraft to Avolon and establishes joint venture with Avolon;
- Flybe launches Manchester–Rennes service;
- redlounge: now you can buy lounge access with Austrian Airlines;
- Contact Air flies with Lufthansa Systems' navigation charts;
- KLM launches ‘à la carte catering’ pilot;
- Transaero to resume Moscow Domodedovo-Kostanay service.
Europe selected airlines daily share price movements (% change): 25-May-2010
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