Middle East and Africa airlines’ shares were mixed again on Friday (05-Feb-2010). Royal Jordanian (+1.1%) continued to make gains on Friday despite Jordan's Civil Aviation Authority cancelling the carrier’s exclusive right to operate scheduled flights to/from Jordan during trading.
The eight-year exclusivity deal, which was signed in 2002, aimed to boost the carrier's financial performance and its privatisation plans. Under its provisions, other Jordanian airline companies were only permitted to operate charter flights during the exclusivity period. Royal Wings and Royal Falcons are currently the only firms licensed to operate scheduled services in Jordan. Jordan's Chief of Civil Aviation Regulatory Commission (CARC), Suleiman Obeidat, stated the annullment aims to encourage the carrier to rectify its operational and administrative conditions, to keep in pace with aviation liberalisation and to attract foreign investment.
Elsewhere in the Middle East, Kuwait National Airways (+3.6%) made the largest gain of the day, moving with the wider market, with Kuwait’s All-Share Index (+0.4%) making a modest gain for the week. Jazeera Airways (-1.0%) and Air Arabia (-1.1%) were both down.
Kenya Airways up with improved traffic
Kenya Airways (+3.0%) was up after reporting a 4.2% year-on-year increase in passenger numbers for Dec-2009, to 773,079. Passenger numbers within Africa were up 9%, while Middle East, Far East and Asia numbers were up 3%, to 421,949 and 120,577, respectively. However, passenger numbers within Kenya were down 5%. European traffic was stable.
Lonrho Group (-2.0%) reported during trading that aviation segment revenue rose 41% based on a comparable currency basis for the three months ended 31-Dec-2009. Lonrho Group owns 49% of Fly 540.
Elsewhere in Africa, 1time Holdings (+0.0%) was stable.
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Selected African and Middle Eastern airlines share price movements (% change): 05-Feb-2010
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