Lufthansa states 2010 analysts' forecasts too high; Turkish Airlines and Aeroflot considering JV

European markets fell again on Friday (22-Jan-2010), after US President, Barack Obama, proposed earlier in the week to implement stricter limits on the size and trading activities of banks to reduce risk taking. Banking stocks fell again as a result, with Deutsche Bank and UBS AG sliding over 4%.

In major markets, the UK’s FTSE (-0.6%), France’s CAC (-1.2%) and Germany’s DAX (-1.2%) were all down.

Lufthansa analysts’ 2010 earnings forecasts too high

Lufthansa (-6.6%) slumped after the carrier stated some analysts had overestimated the carrier’s earnings for 2010, failing to consider "enduring uncertainties" over demand and fuel costs. It was the biggest one-day fall in ten months. See related report: Lufthansa walks the line: Profitability, acquisitions and pilot strikes don’t mix

Also during trading, the carrier called on its pilots to resume talks to avert industrial action. The carrier is confident that a solution for a pay increase and job security can be reached. Vereinigung Cockpit (VC) plans to release the result of its strike ballot on 17-Feb-2010.

Analysts at Juergen Pieper stated a pilot strike this year is very likely, cutting their rating from ‘Buy’ to ‘Sell’ as a result.

Air France expects losses of over EUR300 million on short and mid range services

Air France (-3.1%) reportedly expects losses of over EUR300 million for 2009-2010 short- and mid-range services. As a result, it aims to cut its regional network by 20% in two years and reduce staffing by 750 workers by the end of 2011. The carrier currently employs 4,750 staff in its regional network.

Turkish Airlines and Aeroflot considering launching a JV

Turkish Transport Ministry reportedly announced on Friday that Turkish Airlines (-1.8%) and Aeroflot have held discussions regarding the launch of a new JV carrier. For more information, see today's edition of Europe Airline Daily.

Europe selected airlines daily share price movements (% change): 22-Jan-2010