Lonrho falls despite profit report
Shares in Lonrho, owner of Fly540, fell 5.6% in trading yesterday. The company reported a GBP2.6 million profit in 4Q2010 (three months to 30-Sep-2010)and strong results in its transport division.
- Lonrho's shares fell 5.6% after reporting a profit of GBP2.6 million in 4Q2010.
- Fly540's load factors increased by 19% and revenue by 14% in the full year.
- Fly540's Angola unit is ready to start commercial operations after a lengthy approval process.
- Fly540 Uganda signed an agreement with Chapman Freeborn to expand its capabilities.
- Fly540 group signed lease agreements for two additional CRJ regional jets to increase capacity and enhance profitability in 2011.
- Other African and Middle Eastern airlines, including 1time Holdings, Air Arabia, Kenya Airways, and Royal Jordanian, also experienced share price declines.
Airline load factors gained 19% over the full year. Airline revenue gained 14% year-on-year.
Fly540's Angola unit is now is ready to commence commercial operations, after a drawn out approval process. Fly540 Uganda signed an agreement with Chapman Freeborn during 4Q2010, to expand the capabilites of the carrier.
The Fly540 group has signed operating lease agreements for two additional CRJ regional jets, which will be added to the fleet in Kenya and Tanzania.The additional capacity that these aircraft add will allow the group to increase passenger numbers and enhance profitability in 2011.
Other African and Middle East airline shares lost ground, with 1time Holdings down 2.2% and Air Arabia slipping 2.1%. Kenya Airways and Royal Jordanian were also down.
Selected African and Middle Eastern airlines share price movements: (% change): 02-Nov-2010
Source: Centre for Asia Pacific Aviation, Reuters & Bloomberg