21-Dec-2010 4:19 PM
European airline stocks mostly lower on bad weather
Analysis
European airline shares defied broader market gains yesterday, as investor concerns over the poor weather and transport chaos outweighed positive sentiment elsewhere.
Summary
- 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
Source: Centre for Asia Pacific Aviation, Yahoo! Finance & Reuters