Aer Lingus reports 'positive start' to 2010; Russian Finance Ministry to acquire stake in Aeroflot
The majority of European carriers’ shares were up on Friday (18-Jun-2010), as wider markets edged slightly higher, marking an eighth consecutive session of gains. The banking sector pushed shares higher, offsetting losses in the pharmaceuticals sector.
Aer Lingus reports 'positive start' to 2010
Aer Lingus (+3.4%) gained after Chairman, Colm Barrington, stated 1Q2010 represented a "positive start to the year" for the carrier. Trading during Apr-2010 and May-2010 was ahead of the same period in 2009, despite the impact of the Icelandic volcanic eruption. Ash-related disruptions are expected to reduce earnings by approximately EUR20 million. Aer Lingus reported the following highlights for 1Q2010:
- Revenue: -1.8% year-on-year;
- Capacity: -10.3%;
- Operating costs: -13.3%
- Operating loss: EUR37.8 million, compared with an operating loss of EUR74.8 million in the previous corresponding period.
Aer Lingus CEO, Christoph Mueller, stated the carrier’s long-haul operations are expected to make a loss in 2010, but there is a "fairly good chance" long-haul operations will be profitable from 2011, or as soon as Ireland pulls out of recession.
See related CAPA Profile: Outlooks, Forecasts, Guidance
Russian Finance Ministry to acquire stake in Aeroflot
Russian Finance Ministry confirmed during trading that Russian Technologies would take a small stake in Aeroflot, as part of a deal to transfer the assets of six regional carriers to Aeroflot. The Russian Government holds a 51% stake in Aeroflot.
See related CAPA Profile: European Aviation
Aegean up, easyJet down
Elsewhere, Aegean Airlines (+2.9%) rose with the Athens Stock Exchange (+1.9%), while Dart Group (+2.9%) rebounded. SAS (-2.4%) and easyJet (-1.4%) suffered the biggest falls of the day. easyJet's major shareholder, Sir Stelios Haji-Ioannou, reportedly plans to call an emergency shareholder meeting to protest executive remuneration levels at the carrier.
Europe selected airlines daily share price movements (% change): 18-Jun-2010