European airline stocks mostly lower on bad weather


European airline shares defied broader market gains yesterday, as investor concerns over the poor weather and transport chaos outweighed positive sentiment elsewhere.

  • European airline shares declined despite positive market gains due to concerns over poor weather and transport disruptions.
  • British Airways and Lufthansa experienced share price declines as they cancelled flights during the big freeze.
  • Turkish Airlines saw a slight increase in share price as it confirmed plans to use Istanbul Ataturk airport for expansion.
  • The ISE National 100 index in Turkey fell for the third consecutive day.
  • Investor sentiment towards European airlines was negatively impacted by the weather-related disruptions.
  • The reduction in separation limits between aircraft at Istanbul Ataturk airport influenced Turkish Airlines' decision to use it as a hub for expansion.

British Airways fell 1.9% and Lufthansa declined 0.8% as the airlines cancelled flights amid the big freeze.

In sunnier Turkey, the benchmark ISE National 100 index fell for the third day yesterday (by 1.4%), but Turkish Airlines closed 0.4% higher as it confirmed it would continue to use Istanbul Ataturk airport as a hub for expansion, due to a reduction in separation limits between aircraft using the airport.

Europe selected airlines daily share price movements (% change): 20-Dec-2010

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