Ryanair's shares closed 1.8% higher, after gaining as much as 4.2%, as Europe’s largest LCC reported a quarterly profit that exceeded analysts’ estimates. The LCC also forecast fares may rise by as much as 15% in the current period (after increasing 5% in the Jun-2010 quarter).
Net and operating profits in the quarter to Jun-2010, however, declined 23% and 24%, respectively, on a year-on-year basis, with the carrier being “adversely impacted” by the volcanic ash cloud crisis.
Among the other listed European LCCs, shares in easyJet gained 1.2%, while Vueling rose 1.9% and Air Berlin gained 0.3%. Shares in Norwegian remained unchanged, while Cimber Sterling and Dart Group shares were down by 4.4% and 4.5% respectively.
Among the non-listed European LCC, Flybe signed a contract with Embraer yesterday, covering the purchase of 35 E175 jets. The agreement also includes 65 options and 40 purchase rights, giving the order a potential for 140 E175s. The total value of the contract, at list price, is USD1.3 billion and could reach USD5.0 billion, if all options and purchase rights are exercised. The first aircraft is scheduled for delivery in 2H2011.
See related article: “Flybe to the Moon...” Behind the UK airline's massive Embraer order
Selected LCCs daily share price movements (% change): 20-Jul-2010