European markets weak, British Airways expects yield decline
The majority of European airline stocks remained flat or declined yesterday, reflecting weakness across broader equity markets.
Shares in Iberia (+1.4%) and Finnair (+0.4%) gained, while Lufthansa remained virtually flat (+0.1%), and Austrian and Aer Lingus saw no movement yesterday. However, British Airways’ shares dipped (-0.7%), SAS lost (-1.9%) and Turkish Airlines (-2.4%) closed lower.
BA warned yesterday, that it expects 2QFY2009/10 yields to be lower than 1QFY2009/10 yields due to a decline in Premium demand. The carrier’s financial results for the three months 30-Sep-2009 are scheduled to be released on 06-Nov-2009. BA added it forecasts FY2009/10 revenue of approximately GBP8 billion for twelve months ended 31-Mar-2010, to fall GBP1 billion short of the GBP9 million it posted for the 12 months ended 31-Mar-2009.
Europe selected airlines daily share price movements (% change): 03-Nov-09