26-May-2010 4:21 PM

Vueling only gainer of the day; Aeroflot reports 14.2 ppts improvement in loads; easyJet down

European airline shares slumped with wider markets on Tuesday (25-May-2010), which fell to their lowest point in nine months. The banking sector pushed markets lower, due to a rise in interbank lending rates and continued concern over European austerity measures.

In key markets, UK’s FTSE (-2.2%), France’s CAC (-2.9%) and Germany’s DAX (-2.3%) all ended the session significantly lower.

Vueling only gainer of the day

Vueling (+1.9%) was the only European carrier to witness a rise in its share price for the day, despite a drop in the Spanish IGBM (-3.1%). During trading, the International Monetary Fund called on Spain to make more progress in overhauling its ailing banks. Four Spanish savings banks yesterday submitted a proposal to the nation’s central bank to merge their businesses.

Vueling recently reported an 86.4% year-on-year improvement in passenger numbers, to 909,000. However, load factor was down 2.1 ppts for the period, 73.3%.

Aeroflot reports 14.2 ppts improvement in loads

Aeroflot (-5.4%) declined despite announcing a 14.2 ppts year-on-year rise in load factor for Apr-2010, to 76.0%. Passenger numbers were also up, gaining 27.4%, to 794,100, led by a 31.8% rise in international and 20.9% rise in domestic passenger numbers.

Freight also improved, with the carrier reporting a 13.7 ppts gain in cargo load factor, to 64.5%.

easyJet sales increasing with British Airways strike action

easyJet (-2.6%) also slipped, despite reporting a “substantial” increase in demand due to the striking cabin crew strike at British Airways (-2.7%). Approximately 250,000 of the 500,000 easyJet seats available from the UK during the scheduled strike dates have been sold since the industrial action was initially proposed.

Elsewhere, SAS (-6.0%) and Finnair (-5.7%) were also down.

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:

AerCap signs agreement to sell 6 A320 aircraft to Avolon and establishes joint venture with Avolon;
Flybe launches Manchester–Rennes service;
redlounge: now you can buy lounge access with Austrian Airlines;
Contact Air flies with Lufthansa Systems' navigation charts;
KLM launches ‘à la carte catering’ pilot;
Transaero to resume Moscow Domodedovo-Kostanay service.

Europe selected airlines daily share price movements (% change): 25-May-2010