Vueling (+11.4%) shares leapt yesterday, as the airline basked in a "categorical" assurance from its Chairman that it will make a profit this year.
As the merger with former LCC competitor, clickair proceeds, and capacity cuts (from their combined fleets) appear to be driving improved yields and load factors, Vueling should be well placed. Nonetheless, the profit call is a big one, as the merger is still under way and the year ahead holds many unknowns.
Lufthansa (-4.6%) too slipped back. Tomorrow the carrier commences an expansion of its Latin American network, when a codeshare agreement with TACA comes into force. Daily connections over Miami and Caracas, to San Salvador and Lima respectively will help Lufthansa expand its limited exposure in the potentially lucrative Central American markets, where Iberia (-4.3% yesterday) has long occupied a dominant position.
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European airlines daily share price movements (% change): 30-Mar-09