Europe carriers gain, Air France-KLM, Lufthansa, Austrian and BA all up
Air France-KLM’s shares rose 2.3% yesterday as the carrier reportedly threw its hat back into to ring for Austrian Airlines, should Lufthansa’s takeover bid fail and the carrier is auctioned once again. The German carrier’s shares rose 2.8% amid a strong day for the Dax Index (+3.1%).
Shares in Austrian Airlines gained 1.6% as its agreed on a package of cost saving measures of up to EUR150 million with its Works Councils. Personnel expenditure will be reduced by 5% between 2010 and 2015, although there will be no additional job cuts to the 1,000 already announced.
Another carrier seeking deep cost cuts, British Airways, gained 0.5% yesterday, confirming it would seek 3,700 job cuts by Mar-2010. British Airways CEO, Willie Walsh, told the Associated Press there “is no point trying to skirt around the fact that we need a fundamental and structural change to our employee cost base. These changes are essential to our short-term survival and, more importantly, to our long-term viability".
Europe selected airlines daily share price movements (% change): 15-Jul-09