SAS sets record date for reverse spilt; Aeroflot and Jet2.com parent gain

European carriers’ shares were mixed on Tuesday (01-Jun-2010) as wider markets fell on concerns of slowing manufacturing activity in Europe and China. Oil prices were down 2.8% to USD72.58, slowing the decline in airline shares.

In key markets, UK’s FTSE (-0.6%) and France’s CAC (-0.1%) both slipped for the day, while Germany’s DAX (+0.3%) gained slightly.

Ryanair reports 204% improvement in profit

Ryanair (+7.5%) made the biggest gain of the day after reporting a 204% year-on-year rise in net profit after tax for the 12 months ended 31-Mar-2010 to EUR318.8 million.

Aeroflot gains as future subsidiary purchases new aircraft

Aeroflot (+0.5%) also gained marginally. Russian Technologies Corporation confirmed during trading it awarded Boeing a tender to supply up to 65 narrowbody aircraft. The company, which operates Rosavia, has an agreement with Aeroflot to purchase aircraft on behalf of Aeroflot and lease them. Details are due to be announced shortly, although the initial tender was for 50 aircraft with on option for 15 more. Boeing beat rival Airbus on the tender. Russian Technologies plans to eventually will focus on domestically developed and manufactured aircraft, including the An-148 and SSJ-200 regional jets and the under-development Irkut MS-21.

SAS sets record date for reverse split

SAS (-3.5%) registered the day’s biggest fall. The carrier announced during trading it has decided to set the record date for its reverse split of shares for 09-Jun-2010. A reverse split 1:30 implies that 30 shares in SAS, each with a quota value of SEK0.67 will be consolidated into one share with a quota value of SEK20.10. Following the reverse split the number of shares will be reduced from 9.8 billion to 329 million.

Elsewhere, Vueling (-2.9%) and Eurofly (-2.9%) fell. Dart Group (+4.3%) rebounded from its downward movement. Iberia (+4.2%) also rose.

Europe Airline Daily reports the very latest on what’s happening in the European aviation market, including news on routes, fleets, traffic and financials. Stories featured in today’s issue include:

Europe selected airlines daily share price movements (% change): 01-Jun-2010