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European airline stocks fall, led by easyJet, Ryanair, Jet2.com

Analysis

European airline stocks fell heavily yesterday, reflecting weakness in wider markets and a profit warning from easyJet.

Summary
  • European airline stocks experienced a significant decline due to market weakness and a profit warning from easyJet.
  • easyJet's shares plummeted by 16%, the largest one-day fall since 2004, as the company warned of a potential doubling of its first-half loss.
  • Rising fuel costs and flight cancellations were cited as the primary reasons for easyJet's profit warning.
  • Other airlines, including Ryanair and Jet2.com parent Dart Group, also saw substantial declines in their stock prices.
  • Air France-KLM Group and British Airways were among the other airlines affected by the market downturn, with their shares falling by 4.2% and 1.7% respectively.
  • The decline in European airline stocks on this particular day reflects the challenges faced by the industry, including rising fuel costs and operational disruptions.

easyJet slumped 16% - its biggest one-day fall since 2004 - as it warned its first-half loss may double, due to rising fuel costs and flight cancellations. Ryanair and Jet2.com parent Dart Group also fell heavily.

Air France-KLM Group slid 4.2%, while British Airways fell 1.7%.

European airlines' daily share price movements: 20-Jan-2011

EAD

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