Aeroflot reports 133.4% rise in net profit; airberlin bond offer oversubscribed; Air France-KLM up
Aeroflot (-0.7%) slipped on Tuesday (02-Nov-2010) despite reporting a 133.4% year-on-year increase in net profit to EUR183.6 million for the three months ended 30-Sep-2010 (according to Russian Accounting Standards). Net profit for the first nine months of 2010 rose 55.7% to EUR274.0 million.
The carrier attributes the result to increased passenger traffic and the receipt of USD52 million from Boris Berezovsky following a ruling by a Swiss court.
airberlin bond offer oversubscribed on first day
airberlin (+6.3%) shares soared after announcing it has closed its EUR200 million bond offer, having been oversubscribed on the first day. On 01-Nov-2010, the carrier disclosed its intention to issue EUR150 million bonds between 02-Nov-2010 and 05-Nov-2010. The carrier also reserved an option for an additional EUR50 million in bonds.
Air France-KLM (+1.1%) also gained for the day, following news Alitalia CEO Rocco Sabelli reportedly intends to offer Alitalia as a merger partner for Air France-KLM beyond 2013. The CEO’s comments are to be published as part of a book written by an Italian journalist.
Alitalia Chairman, Roberto Colannino, dismissed any idea of a merger with the airline group, stating the plan was unlikely to receive shareholder support. Air France-KLM already has a 25% stake in Alitalia, taken as part of the restructuring of the carrier in 2008.
Ryanair (+1.0%) also rebounded, as Arbuthnot upgraded its share rating for the carrier from "buy" to "strong buy", also increasing its target price from EUR4.75 to EUR5.
Europe selected airlines daily share price movements (% change): 02-Nov-2010