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Turkish Airlines, SAS shares lose ground; Air France-KLM reports traffic

Analysis

Turkish Airlines announced plans to operate to 11 new destinations in 2011. The carrier plans to launch new long-haul services to Guangzhou, Los Angeles and Manila, as well as more destinations in North Africa, the Middle East and Europe.

Summary
  • Turkish Airlines plans to expand its operations by adding 11 new destinations in 2011, including Guangzhou, Los Angeles, and Manila.
  • Shares in Turkish Airlines and SAS Group experienced a decline, with Turkish Airlines down 4.8% and SAS Group down 4.1%.
  • Several major carriers, including Air France-KLM Group, Lufthansa, and British Airways, are reportedly interested in bidding for SAS Group if it undergoes privatization.
  • Air France-KLM reported a 1.6% decrease in consolidated passenger traffic in December 2010, attributing it to the impact of winter snowstorms in Europe.
  • The estimated cost of the winter storms to Air France-KLM's operations is EUR70 million, while British Airways estimated it would cost GBP50 million.
  • The daily share price movements of selected European airlines on January 11, 2011, were also provided.

Shares in Turkish Airlines were down 4.8% on Monday. Shares in SAS Group also fell (-4.1%). SAS' shares have fallen back after a report last week that several carriers, including Air France-KLM Group, Lufthansa and British Airways, would be willing to bid for the airline if it underwent privatisation.

Air France-KLM reported consolidated passenger traffic fell 1.6% in Dec-2010. The group estimated the impact of the winter snowstorms in Europe at EUR70 million to it operations. British Airways estimated earlier that the winter storms would cost it GBP50 million.

Selected European Airlines daily share price movements (% change): 11-Jan-2011

EAD

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