Three of the main Nordic region airlines have enjoyed a positive start to 2017, but there can still be turbulent skies ahead.
SAS enjoyed a share jump of more than 40% on the Stockholm Stock Exchange.
Finnair welcomed 1.1 million passengers on board during July, an increase of 8% compared to the same month last year – and new record for the Finnish flag carrier.
And Norwegian flew more than 3.3 million passengers in July, an increase of 15% over 2016 – and also the highest number of travelers in a single month ever for the Oslo-based company.
“For European airlines it looks better than expected at the beginning of the year. The price pressure on tickets has not been as tough as expected” says Jacob Pedersen, share manager at Danish Sydbank, adding that several companies have seen an increase in market capitalization.
Good oil prices
All those indicators might be good for Nordic carriers, but there is also a cloud on the horizon.
“In the future it may be more intensive, more capacity will be available on the market in the next six months, which can put pressure on ticket prices,” says Jacob Pedersen.
According to Pedersen, oil prices of around $50 a barrel have been favorable to the companies. Even the weaker dollar is generally favorable to European companies that have a share of their costs in the US currency.