Shares in British Airways (BA) gained 1.1% yesterday, despite the carrier confirming full year revenue may fall by GBP1 billion if the decline in sales continues at the same pace as in 1Q2009. Sales fell by 12.0% for the three months ended 30-Jun-09 to GBP2.0 billion.
BA CEO, Keith Williams believes it would be likely for the carrier’s recovery to lag any improvements in economic growth and that the company needs to boost its cash reserves to ensure its survival in the current economic climate. Mr Williams stated “there is no quick fix in sight for us. It is likely that recovery in the UK and US will take some time.” Meanwhile, BA CEO, Willie Walsh, stated the carrier’s yields are likely to be outperforming rival carriers, although no further details were provided.
Elsewhere, shares in Air France-KLM rose 1.7%, as the Paris CAC Index closed 1.01% higher, while Lufthansa gained 1.1%, as the Frankfurt DAX was up 1.04% yesterday. Virgin Atlantic has been in contact with Lufthansa regarding a potential tie up with Lufthansa’s bmi unit, with the carrier now awaiting a decision by Lufthansa. Lufthansa stated it “continue to evaluate all options, but no decision has been made”.
Europe selected airlines daily share price movements (% change): 24-Aug-09