Air France-KLM shares savaged on profit downgrade, British Airways, Iberia hit - share wrap
Air France-KLM shares plunged 9.5% on 20-Jan-09 as investors punished the airline for its disclosure that it would post a third-quarter operating loss, raising concerns about the outlook. The carrier stated, "the deterioration in the economic environment during the third quarter has led to a slight weakening in passenger unit revenues and a strong decline in cargo revenue".
Air France-KLM still expects to achieve an operating profit for the year ending 31-Mar-09, but the level would depend on the economic situation in coming weeks. Investors are clearly unhappy with the opaque outlook.
European selected airlines daily share price movements (% change): 20-Jan-09