Aegean Airlines declines on analyst cut; Air France-KLM and British Airways up
Aegean Airlines (-0.9%) declined in a day where the majority of European airline shares gained (08-Dec-2010). The carrier fell after National P&K Securities lowered its price target for the carrier’s shares from EUR5 to EUR3 during trading. The analysts attributed the lowering to a cut in its sales forecas, due to “weaker travel demand” in the short to medium term.
Air France-KLM (+0.8%) was up, despite having to cancel and delay a number of services from Paris during the day due to heavy snow.
Air France also gained after Societe Generale analyst Jonathan Wober stated Air France will not need to cut its operating costs to the same level as LCCs to remain competitive, as a number of passengers will be willing to pay more for full service flights. Societe Generale has a "buy" rating on the carrier’s stock.
Air France-KLM is looking to regain market share on short haul routes away from LCCs. Network Chief Bruno Matheu stated Air France may launch services from Marseille to Marrakesh and Tangier, after Ryanair’s exit from Marseille.
See related CAPA Profile: Market Share
British Airways to resume talks with cabin crew union
British Airways (+0.9%) was also up on news the day prior it plans to resume negotiations with cabin crew union Unite this week to resolve their 22-month pay and staffing dispute. Unite General Secretary Tony Woodley stated negotiations are expected to resume this week under the auspice of the Advisory, Conciliation and Arbitration Service (ACSA). BA and Unite have reached a bread agreement on employment terms, but in addition the union is requesting a full restoration of travel benefits previously suspended until 2013 and binding arbitration on disciplinary cases. The union is preparing a ballot on strike action in the new year, with a result expected on 14-Jan-2011.
See related CAPA Profile: Industrial Relations
Europe selected airlines daily share price movements (% change): 08-Dec-2010