European airline shares rose yesterday, led by LCCs Vueling (+5.5%), Ryanair (+4.6%) and Air Berlin (+4.4%), as France and Germany agreed to a draft document on a financial aid package for Greece involving eurozone countries and the International Monetary Fund.
LCC capacity (seats) share to/from Greece (%): 2001 to 2009
easyJet’s shares advanced 0.7%. Nomura Securities adjusted its forecasts for easyJet to factor in an improved revenue environment, underlying cost reductions and the deterioration of Sterling against the US dollar. The net effect is an upgrade to its 2010 profit before tax forecast from GBP140 million to GBP185 million and an increase in the broker’s valuation of the stock from GBP4.20 to GBP5.0. The broker rates easyJet's shares as "buy".
Selected LCCs daily share price movements (% change): 25-Mar-2010