Shares in British Airways were virtually flat yesterday (-0.1%) as the UK carrier announced further plans to reduce the size of its workforce.
BA plans to terminate the contracts of 125 non-permanent cabin crew on 31-Oct-09, adding to 140 voluntary redundancies accepted by full-time cabin crew. The carrier is seeking to reduce its workforce by 2,000 employees as part of cost restructuring and may resort to compulsory redundancies to reach the required amount.
Aer Lingus, also seeking significant staff cost reductions, gained 1.0% yesterday.
Air France-KLM shares higher on upgrade
Elsewhere, shares in Air France-KLM were up 1.0%, while the Paris CAC Index closed 0.11% lower. The Group has been upgraded from “neutral” to “buy” by Bank of America Corp, which also raised its price estimate for the airline’s shares by 40% to EUR14. According to Bank of America, “with recent more encouraging newsflow, we think prospects are more attractive”.
Lufthansa meanwhile, strengthened 0.6%, while the Frankfurt DAX closed 0.07% lower.
Europe selected airlines daily share price movements (% change): 15-Sep-09