Air Arabia net profit declines 51%; Lonrho slumps; Kenya Airways only gainer
The majority of Middle Eastern and African carriers’ shares were down on Friday (07-pr-2010) as wider markets moved lower with global markets on concerns over debt issues in Europe.
In Africa, Lonrho (-7.7%) slumped, despite last week reporting a 25.4% year-on-year rise in turnover for the three months ended 31-Mar-2010. However, profit before tax was down to GBP1.8 million, compared with GBP2.2 million in the previous corresponding period.
1time Holdings (-0.9%) was also down, while Comair was flat, as the South African JSE Index dropped 3.6%.
Kenya Airways (+0.9%) was, meanwhile, the only gainer of the day, moving higher as Kenya’s All-Share Index (+0.4%) rose for a third consecutive day.
Despite Air Arabia's profit drop, CEO 'pleased' in present economic climate
In the Middle East, Air Arabia (-3.4%) after reporting a 51% year-on-year decline in net profit, to USD13.6 million, for the three months ended 31-Mar-2010. Revenue however rose 4%, to USD131.2 million.
Passenger numbers for the quarter rose 9.2%, to 1.0 million, while load factor was stable at 80%.
CEO, Adel Ali, stated that although the global financial downturn and rising fuel costs continue to affect the profitability of carriers, he is pleased with the LCC’s results.
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Selected African and Middle Eastern airlines share price movements (% change): 07-May-2010