Europe’s full service carriers take stock market hit
Shares in some of Europe's biggest full service carriers took a hit on Wednesday, as European markets closed generally lower. The largest fall was recorded by British Airways (-4.2%), followed by its merger partner Iberia (-3.9%), Lufthansa (-3.6%), Air France-KLM Group (-3.5%) and SAS Group (-2.8%).
- Shares of major European full-service carriers, including British Airways, Iberia, Lufthansa, Air France-KLM Group, and SAS Group, experienced significant declines in the stock market.
- Low-cost carriers (LCCs) such as Ryanair, Vueling, Cimber Sterling, easyJet, and Norwegian were less affected by the market downturn.
- European stocks were negatively impacted by concerns over the ongoing debt crisis and doubts about the effectiveness of measures taken to address the problem.
- The euro initially weakened against the US dollar but rebounded to an eight-week high.
- European finance ministers are meeting to discuss additional measures to address the debt crisis.
- Rising oil prices are also a cause for concern for airlines.
LCCs in the region were less affected, with Ryanair, Vueling and Cimber Sterling unchanged, easyJet gaining 0.4% and Norwegian improving 1.8%.
European stocks were affected by concerns over the lingering impact of the debt crisis and fears that measures taken have not been enough to fully control the problem. The euro ended a five-day rally against the US dollar earlier this week, but surged yesterday to an eight-week high. European finance ministers are meeting to debate more measures to help resolve the crisis. Also affecting airlines is renewed concerns over the trajectory of oil prices.
Selected European airlines daily share price movements (% change): 19-Jan-2011
