British Airways reports surprise profit, Vueling suffers over concerns for Spain’s debt
European markets were down for a second day on Friday (05-Feb-2010), dragging down airline shares, as investors continued to express concern over debt in Eurozone countries. Early in trading, investors were also concerned ahead of US unemployment data, released later in trading. However, the data showed an unexpected drop in unemployment, to 9.7% in Dec-2009. Oil prices slid 2.7% to USD71.19 per barrel in New York.
Dart Group (-6.0%) was also down.
British Airways reports surprise profit, Finnair reports expected loss
British Airways (-2.4%) reported an operating profit of GBP25 million for the three months ended 31-Dec-2009, but its shares fell with the wider market. Meanwhile, Finnair (-2.6%), reported an operating loss of EUR39.4 million for the same quarter, in line with expectations.
Also during trading, British Airways CFO, Keith Williams, stated changes to the carrier’s future pension arrangements were unavoidable, and the carrier is not ruling out any options to deal with its GBP3.7 billion pension debt. The carrier is looking to make the changes in order to reach a merger agreement with Iberia (-2.5%).
Norwegian reports 21% reduction in yield
Norwegian Air Shuttle (-1.2%) meanwhile reporting a 21% reduction in both yield and revenue per ASK in Jan-2010 (to NOK0.48/EUR5.87 and NOK0.34/EUR4.15), for the largest year-on-year yield reduction in over 21 months.
Europe selected airlines daily share price movements (% change): 05-Feb-2010