Aeroflot net profit rises 16.9% in 1H2010; Iberia’s RASK and load factors improving
The majority of European airline shares rose on Friday (13-Aug-2010), as the wider market made a modest gain for the session. Markets were boosted by news the Euro zone economy grew at its fastest quarterly pace in 2Q2010.
Aeroflot net profit rises 16.9% in 1H2010
Aeroflot (+1.7%) shares were up after the carrier’s net profit rose 16.9% year-on-year for the six months ended 30-Jun-2010 to EUR99.7 million, on a 18% improvement in revenue to EUR1,234 million.
Passenger numbers for 1H2010 also advanced, up 32.4% to 5.1 million.
Iberia’s RASK and load factors improving
Iberia (+1.6%) also rose after the Spanish carrier reported a 2.8 ppt year-on-year improvement in load factor, to 87.6% for Jul-2010. The rise was the result of a 5.3% improvement in traffic (RPKs) on a 1.9% increase in capacity.
The carrier stated unit revenue per ASK maintained a significant increase with respect to the previous year, despite the augment of 10.6% in the average stage length, in part boosted by the growth of business-class traffic in long and medium-haul routes.
See related CAPA Profile: Traffic and Capacity
Lufthansa down as government increases air travel tax
Lufthansa (-0.6%) slipped slightly on news the German Government has revised its three-tier tax on air travel, increasing the proposed tax on long-haul services. The government now plans to impose a tax of EUR8 for short-haul flights, instead of EUR9 for European flights and services to Libya, Morocco and Tunisia. The government still plans to impose a EUR25 levy on medium-haul flights, but has increased the proposed tax on long-haul flights from EUR40 to EUR45.
See related CAPA Profile: Regulatory Affairs Review
Europe selected airlines daily share price movements (% change): 13-Aug-2010