British Airways aiming to break even this year; Turkish Airlines staff to strike; SAS gains
European airline shares were mixed on Friday (21-May-2010), as fuel prices (-1.1%) continued to decline, to USD70.04. European markets fell to their lowest point in over eight months during the day on concerns over the impact of European austerity measures on economic growth.
- European airline shares were mixed as fuel prices continued to decline and concerns over European austerity measures impacted economic growth.
- British Airways aims to break even in the current financial year despite reporting a pre-tax loss.
- Turkish Airlines faces a potential strike by its workers' union over wages and working hours.
- SAS gains as investors look to the country for investment due to lower risk in certain European markets.
- Aegean Airlines and Athens Stock Exchange experience gains, while Cimber Sterling and Vueling face losses.
- Other news in the European aviation industry includes easyJet's aircraft delivery, Air France's addition of Premium Voyageur, Austrian Airlines' capacity expansion, Alitalia's capital plans, and Finnair's aircraft lease to Kenya Airways.
In key markets, UK's FTSE (-0.2%), France's CAC (-0.1%) and Germany's DAX (-0.7%) all ended the session lower.
British Airways aiming to break even this year
British Airways (+0.9%) gained slightly after stating it is aiming to break even in the current FY2010-11, despite reporting a pre-tax loss of GBP531 million for the 12 months ended 31-Mar-2010.
CEO, Willie Walsh, stated the carrier believes it can break even on the pretax profit level in the next financial year, but that a "permanent change" is essential to recovery. Chairman, Martin Broughman, meanwhile stated the carrier took "heart in the fact" that although revenue fell by GBP1 billion, so did costs.
See related report: British Airways completes woeful year for Europe's Big Three. Outlook brighter
Turkish Airlines staff to strike
Turkish Airlines (-2.9%) fell after confirming the Hava Is workers union gave it notification of an intent to strike over wages and working hours. The notification triggers a 60-day negotiation period. Under Turkish law, notice of six days is required before a strike can be held. Hava Is represents 11,000 workers at the carrier, including pilots and flight attendants.
SAS gains with wider market
Elsewhere, SAS (+7.6%) retraced some of its losses earlier in the week as the OMX Stockholm 30 Index (+0.6%). Investors are increasingly looking to the country for investment, as its banks have less risk in Greece, Italy, Portugal and Spain.
Aegean Airlines (+5.0%) also gained, as the Athens Stock Exchange (+0.8%) rose, while Cimber Sterling (-4.6%) and Vueling (-4.5%) fell.
Europe Airline Daily provides the very latest news on the Europe aviation industry in a quick and easy to read format. News featured in today's issue includes:
- easyJet takes delivery of 136th A319 aircraft;
- Air France adding Premium Voyageur to New York Newark;
- Austrian Airlines expands long-haul capacity to South Asia;
- Alitalia: No plans for capital increase;
- Finnair leases two E170s to Kenya Airways.
Europe selected airlines daily share price movements (% change): 21-May-2010
Source: Centre for Asia Pacific Aviation & Yahoo! Finance