Scandinavian, Norwegian Air Shuttle, Cimber Sterling gain as strike atmosphere improves


Amid an environment of cost control, confrontation and change among Scandinavian airlines, the Swedish Airline Pilots Association (SweALPA) took its pilots out on strike briefly in mid-Jun-2010.

  • SweALPA's strike briefly impacted Scandinavian airlines, causing disruptions and losses for both major and commuter airlines.
  • Norwegian Air Shuttle, Cimber Sterling, and SAS experienced a strong recovery in their share prices after the strike, indicating a potential return to stability.
  • Norwegian Air Shuttle's share price dropped by over a quarter during the strike but rebounded on July 2nd.
  • SAS also saw a decline in its share price during the strike but regained some value on July 2nd.
  • Most airline shares performed well on July 2nd, with Turkish Airlines, Air Berlin, and Ryanair being the top gainers.
  • Dart Group, the parent company of Jet2.com, experienced a 4.5% loss in share price on July 2nd.

Commuter airlines were worst hit, although the majors also suffered. But, after losing ground, Norwegian Air Shuttle (+7.4%), Cimber Sterling (+6.5%) and SAS (+5.8%) all recovered strongly on Friday 2-Jul-2010, as industrial relations fears waned. This could signal a return to a more stable airline atmosphere among the Scandinavian airlines.

Since peaking at NOK133.00 in mid-Jun-2010, Norwegian Air Shuttle shed more than a quarter of its value as the strike fallout spread, bottoming at NOK97.75 on 01-Jul-2010 and rebounding to NOK105 on Friday. SAS also declined during the month, from SKR29.5 to SKR24, regaining SKR1.5 on Friday.

With markets generally up across Europe on the day (in contrast with Wall Street, where another sombre trading day led into the Independence Day weekend), most airline shares performed well. Turkish Airlines (+3.5%), Air Berlin (+3.1%) and Ryanair (+3.0%) were the larger winners. See related report: End of an era: Ryanair continues shift away from UK/Ireland

The exception was Jet2.com's parent, Dart Group, losing 4.5% on the day, after gains earlier in the week.

Europe selected airlines daily share price movements (% change): 02-Jul-2010

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