European airline shares rose on Monday (26-Jul-2010) as wider markets closed at a five week high, led by gains in the banking sector after passing stress tests relatively unscathed. A strong rebound in US homes sales for Jun-2010 also pushed markets higher, following a record low month in May-2010.
Cabin crew union launches legal action against British Airways
British Airways (+1.4%) shares rose despite cabin crew union, Unite, announcing plans to launch legal action against the carrier’s decision to withdraw staff travel concessions from cabin crew who took part in strike action earlier this year. Unite stated that BA's actions breach European human rights legislation, and that this sanction was taken without adhering to proper proper disciplinary procedures. BA responded stating it "totally reject[s] the claim from Unite and will defend our position vigorously.”
See related CAPA Profile: Industrial Relations
Air Berlin to join oneworld
Air Berlin (+0.3%) rose only marginally, despite announcing during trading it has signed an agreement with oneworld on key aspects of Air Berlin's membership in the alliance. Under the sponsorship of British Airways, Air Berlin will work towards completing a full membership agreement with oneworld. Air Berlin has also entered into codeshare agreements with American Airlines and Finnair, effective 01-Nov-2010.
See related CAPA Profile: Global Alliances
Vueling to announce results on 27-Jul-2010
Vueling (+8.1%) was the biggest gainer of the day ahead of releasing its 2Q2010 financial results on 27-Jul-2010. The LCC reported a net loss of EUR6.3 million in 1Q2010, equal to its result in 1Q2009. Dart Group (+5.1%) also rose higher.
SAS (+4.1%) also rose as the OMX Stockholm 30 Index rose 0.2% for the day.
Eurofly (-5.2%) was the only carrier to suffer a significant fall in share price for the session. The carrier has been suffering operational issues with the air traffic controller strike in Greece. Thomas Cook Group (-0.7%) was also down.
Europe selected airlines daily share price movements (% change): 26-Jul-2010