liquidhockey
3rd Jan 2002, 23:05
I dont mean to be insensitive but i havent been around these parts for some time now and i was wondering...
With the blow that sept 11th has caused to this industry in mind how are things coming along as regards to job numbers rising or are they still falling??
THOUGHT THIS MAY BE OF INTEREST...FROM THE FT WEBSITE:
[quote]
KLM sees signs of recovery
By Peter Bale, FTMarketWatch 9:53:00 AM GMT Jan 4, 2002
LONDON (FTMW) - Shares in KLM and British Airways jumped on Friday after the Dutch airline reported a modest improvement in traffic figures in December from the slump after the September 11 terror attacks.
KLM stock jumped more than 5 per cent to €13.40 in Amsterdam and British Airways - which is to report its own traffic data later on Friday - also rose 5 per cent to 225p.
Other major flag carriers in Europe also rose. Air France gained almost 3 per cent to €16.50 in Paris while Lufthansa rose 3 per cent to €16.20.
While still down on the previous year and enduring a sharp fall in North Atlantic traffic, KLM said December showed a relative recovery in November and October.
Analysts see turnaround
"KLM's December traffic statistics illustrated the continued improvement in (the) major airline operating environment," JP Morgan analyst Andrew Lobbenberg said in a note to clients.
The Merrill Lynch airline team said the KLM figures could lead to a reassessment of the prospects for the airline industry.
"Clearly the trend is for improvement from the weak numbers reported in previous months," Merrill said in a note. For KLM, however, it said it was sticking to its "neutral" recommendation.
KLM detail
KLM's overall traffic, including cargo, fell 8 per cent in December after falls of 12 per cent and 10 per cent in October and November in the aftermath of the attacks on the US.
Its passenger load factor fell year on year to 73.7 per cent from 74 per cent, but that was an improvement over November. Passenger traffic fell 10 per cent and the airline cut 9 per cent from carrying capacity in the month. North Atlantic travel, however, fell 23 per cent and capacity was reduced by 24 per cent.
Airline stocks, including KLM, were hit hard by the fall off in travel and analysts have been looking to data from the Dutch airline and traffic from British Airways due shortly, for signs of a rebound in the airline sector. KLM hit a year low of €7.30 in the immediate aftermath of September 11, compared with its year high of €28 in February.
British Airways hit a low of 113.25p after September 11 but has recovered strongly in the past two months as analysts see it as strong and well placed to take advantage of expected consolidation in the European industry, including a long hoped for alliance with KLM.
Alliances
Lobbenberg said he expected British Airways and KLM to announce a code-sharing deal, allowing them to carry each others' passengers but stopping short of a full alliance.
He recommends Air France and Lufthansa in the sector.
Discount airlines, which have performed more strongly than the flag carriers since September 11 based on their minimal exposure to North Atlantic and other international routes, gained less than the major airlines on the back of the KLM news.
Unlisted discount airline Go, now owned by venture capital group 3i after it was spun out of British Airways, on Friday confirmed the advantage discount airlines have secured over other carriers, reporting a 57 per cent rise in December traffic. It said its load factor rose to 70.5 per cent from 68.9 per cent.
Ryanair was modestly higher a 426.5p and easyJet was 1.3 per cent higher at 472.5p.
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Let's hope it continues.
Edited for pesky internet speak
[ 04 January 2002: Message edited by: bow5 ]
[ 04 January 2002: Message edited by: bow5 ]</p>