Aer Lingus rises to highest point since Feb-2009; SAS yield down; Air France-KLM falls
The majority of European airline shares were down on Friday (06-Aug-2010) as wider markets fell to their lowest close in a week. The fall was the result of reports that US employment falling for a second consecutive month in Jul-2010.
- European airline shares decline as US employment reports impact wider markets.
- Aer Lingus shares rise due to optimism about cost-cutting measures.
- Cimber Sterling reports an 11% increase in passenger numbers but a decline in load factor.
- SAS experiences a decrease in yield and revenue per ASK for June 2010.
- Air France-KLM witnesses stable passenger numbers and an improvement in load factor.
- Aegean Airlines and Lufthansa shares decline, while EL Al and Ryanair make moderate gains.
In key markets, UK's FTSE (-0.6%), Germany's DAX (-1.2%) and France's CAC (-1.3%) all ended the session lower.
Aer Lingus rises to highest since Feb-2009
Aer Lingus (+1.5%) rose to its highest level since Feb-2009, as investors remain optimistic the airline will be able to continue introducing cost cutting measures. The airline has stated it will continue flying regardless of the result of its cabin crew ballot for strike action.
See related CAPA Profile: Industrial Relations
Cimber Sterling passenger numbers up 11%
Cimber Sterling (+8.9%) was meanwhile the day's biggest gainer after passenger numbers for Jul-2010 rose 11% year-on-year, to 238,414. However, load factor was down 3 ppts, to 76%.
Norwegian Air Shuttle (+1.4%) was also up, after also reporting improved passenger numbers, while Vueling (-1.6%) fell on a decline in load factor for Jul-2010.
See related report: Yield reductions at Cimber Sterling and Norwegian Air Shuttle; double digit pax growth
SAS yield down
SAS (-0.4%) slipped, after Scandinavian Airlines' yield fell 9.0% year-on-year for Jun-2010. Revenue per ASK (RASK) was also down for the month, falling 7.2%. The group stated its yield was affected by a mathematical routemix effect from the relatively strong performance on intercontinental routes versus short haul routes, one off adjustments of the frequent flyer liability but also due to overcapacity and price pressure in some markets. Its yield outlook for Jul-2010 is uncertain and indicates yield (change) in line with May-2010.
See related CAPA Profile: Yields
More positively, the group reported a 1.0 ppt year-on-year rise in load factor for Jul-2010, to 84.7%. Passenger numbers were also up for the month, rising 2.6%, to 2.0 million.
Air France-KLM seeing upturn in passenger and cargo demand
Air France-KLM (-1.6%) was also down as passenger numbers for Jul-2010 were stable, at 6.9 million. Load factor for the group rose 1.1 ppts, to 86.2%, led by a 2.4 ppt improvement in European loads, to 79.1%.
The group stated the pick up in both the passenger and cargo businesses continued in Jul-2010, both in terms of traffic and unit revenues. This improvement reflects both an upturn in demand as well as prudent capacity management. As in the previous two months, unit revenue per available seat kilometer (RASK) ex-currency saw a strong year-on-year rise, with a marked recovery in both Premium and Economy classes.
Elsewhere, Aegean Airlines (-2.4%) and Lufthansa (-2.2%) also declined for the day, while EL Al (+0.7%) and Ryanair (+0.5%) made moderate gains.
Europe selected airlines daily share price movements (% change): 06-Aug-2010
Source: Centre for Asia Pacific Aviation, Yahoo! Finance & Reuters