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Jazeera Airways reports net loss for 1Q2010; 1time and Comair slump; Air Arabia flat

Analysis

Middle East and North American carriers were down on Friday (14-May-2010) as wider markets sunk on continued concerns over euro zone debt issues. Air Arabia was the only carrier not to decline.

Summary
  • Middle East and North American carriers experienced a decline in stock prices due to concerns over euro zone debt issues.
  • Jazeera Airways reported a net loss of USD15.5 million for the first quarter of 2010, despite generating revenue of USD31.7 million.
  • Kuwait National Airways and Royal Jordanian also saw a decline in stock prices.
  • South African airlines, 1time Holdings and Comair, experienced significant falls in stock prices.
  • Lonrho and Kenya Airways also saw a decline in stock prices.
  • The Centre for Asia Pacific Aviation (CAPA) has launched a new strategic business information service covering the aviation markets in the Middle East and Africa.

Jazeera Airways (-2.4%) was down after earlier in the week reporting a net loss of USD15.5 million for the three months ended 31-Mar-2010. The decline was despite the carrier reporting revenue of USD31.7 million for the period.

Chairman, Marwan Boodai, stated that despite the poor performance for 1Q2010, the carrier remains "upbeat" that it will close 2010 with a profit, "driven by the turnaround initiatives that were put in place in fourth quarter 2009 and first quarter 2010".

Also in the Middle East, Kuwait National Airways (-1.9%) fell, despite a 0.7% rise in the Kuwait Stock Exchange for the week. Royal Jordanian (-1.1%) was also down.

In Africa, 1time Holdings (-2.6%) and Comair (-2.4%) suffered the biggest falls of the day, as South Africa's JSE all share index slumped 2.5%.

Lonrho (-2.2%) and Kenya Airways (-1.8%) were also down.

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Selected African and Middle Eastern airlines share price movements (% change): 14-May-2010

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