British Airways and cabin crew union make negotiation progress; analysts expects losses for Iberia
European carriers mostly witnessed a decline in shares on Tuesday (23-Feb-2020), moving lower with the wider market which fell after the US Conference Board Consumer Confidence Index declined sharply in Feb-2010 to 46.0, down from 56.5 in Jan-2010.
Consumers' short-term outlooks, which had been improving, lost considerable ground in Feb-2010. Data showing an unexpected fall in German business confidence in Feb-2010 also pushed markets lower. In key markets, UK's FTSE (-0.7%), France's CAC (-1.4%) and Germany's DAX (-1.7%) all ended trading lower.
British Airways and cabin crew union make negotiation progress
British Airways (+1.1%) was one of few carriers to gain on Tuesday after the carrier and its cabin crew union, Unite, indicated that the two have made progress since resuming negotiations earlier this week. Talks are being held under the auspices of the UK's Trades Union Congress. British Airlines Stewards and Stewardesses Association (Bassa) stated it is yet to issue a strike date, as it does not want to strike and hopes British Airways will now listen to its requests.
Analysts expects losses for Iberia
Iberia (+1.2%) was also up, despite analysts stating they expect the carrier to report a net loss for FY2009, following a decline in revenue, as a result of lower demand and weaker premium traffic, according to Dow Jones. Analysts believe the carrier's cost cutting programmes and route network adjustments will not be enough to offset the losses.
Vueling down despite EUR27.7 million profit
Meanwhile, Iberia subsidiary, Vueling (-5.7%), suffered the day's biggest fall after reporting a EUR27.7 million profit in 2009 (+225% year-on-year), for a net profit margin of 4.6%, (+2.7 ppts), as revenues increased 36% (to EUR602 million), reflecting the integration of Vueling and clickair on 01-Jul-2009.
See related article: Vueling profitable in 2009 following clickair merger; Nok Air expects USD9 million profit in 2010
Also featured in today's Europe Airline Daily:
- Lufthansa schedule progressively returning to normal following pilot strike;
- Croatia Airlines cabin crew plan to launch a strike on 26-Feb-2010;
- Aer Lingus to open new centralised operations centre at Dublin Airport Hangar 6;
- airBaltic planning to purchase a stake in Estonian Air.
Europe selected airlines daily share price movements (% change): 23-Feb-2010
