Air Arabia shares downgraded; Kenya Airways continues fall;
Air Arabia (-0.9%) slipped on Monday (29-Mar-2010) after HC Research cut its rating on the LCCs shares from ‘Buy’ to ‘Hold’, citing rising yield pressures, due to excess capacity and competition. The analysts also cut Air Arabia’s price target by 12%, to AED1.11.
HC Research noted Air Arabia’s early Summer fares, with discounts of over 40%, indicate the likelihood that yield pressure extended through to the peak period. The analysts added they do not expect strong dividend payments to continue, after the LCC announced a dividend payment of 10% of share capital for 2009. According to HC, this is holding Air Arabia’s share price up at present.
The Centre for Asia Pacific Aviation (CAPA) has launched a unique new strategic business information service covering one of the world’s most exciting emerging aviation markets. Middle East-Africa Airline Daily is an efficient morning briefing on airline developments from both regions. Covering fleets, routes, financials, traffic, bilateral agreements, alliances, financing, ownership, along with analysis of all significant developments, it is your one-stop shop to aviation news from Africa and the Middle East – and best of all it’s free for a limited time. Sign-up today!
Selected African and Middle Eastern airlines share price movements (% change): 29-Mar-2010