Air France-KLM; Lufthansa; IAG shares diverge
Air France-KLM and Lufthansa shares fall, while British Airways owner IAG sees its stock head higher. IGTV financial analyst Angeline Ong looks at their results, outlook and circumstances that have led to their respective moves.
(AI Video Summary)
European airline industry's interesting developments
Let's take a look at three major players:
Air France-KLM
Air France-KLM has had a bit of a setback, with their stock dropping by over 8%. This unexpected loss was mainly caused by increased costs and problems in the Middle East. They had to spend more money on maintenance and deal with disruptions to their schedule. Other airlines in Europe have actually been doing well, so this sets Air France-KLM apart.
Lufthansa
Lufthansa, the German airline, has also had its share of troubles. Their stock has fallen by around 1% due to labor disputes. This has led to long strikes and the cancellation of many flights. Because of all these problems, it's unlikely that Lufthansa will meet its profit goal for 2024. They're also having a hard time hiring new employees because of inflation and many cabin crew members leaving after the Covid-19 pandemic.
IAG
On the other hand, British Airways owner, IAG, has seen a slight increase in their share price, rising by about 0.5%. They actually reported a profit that was more than double what they made the previous year. They're feeling positive about the future and seem to be doing well in terms of travel demand.
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