European markets rebound, Air France-KLM, Lufthansa and British Airways gain

Shares in Air France-KLM jumped 2.8% yesterday, as the carrier revealed it could expect unit revenues to stabilise in 2HFY2009/10 after big falls in the first quarter, if the global economy starts a gradual recovery at the end of 2009. The carrier’s unit revenue dropped 13.9% year-on-year for the three months ended 30-Jun-09. Air France-KLM reported an operating loss of EUR496 million for the period (compared to a profit of EUR201 million in the previous corresponding period.

Shares in Lufthansa rebounded 1.6% yesterday, on the release of its financial results for 1H2009. While the carrier still sees “no sign of recovery”, it has restored investor confidence with its preparedness for a “further drop in demand and for the opportunities, which would arise if competitors left the market”. The carrier generated an operating profit of EUR20 million for the six months ended 30-Jun-09, which was down 97.3% compared to the previous corresponding period.

British Airways’ shares rose 0.8% yesterday, while the London FTSE 100 Index closed 1.85% higher.

Europe selected airlines daily share price movements (% change): 30-Jul-09