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