Airlines endured a turbulent morning of trading after Lufthansa adjusted its annual earnings forecast, warning that unit revenues would fall in the second half of the year.
Shares in the Frankfurt-listed carrier fell 3.5 per cent. The repercussions were felt in London, where Easyjet lost 21p to £14.09¼ and International Airlines Group, which owns British Airways, faded by 9p to 614½p. Wizz Air, which is due to update the market tomorrow, slipped 54p to £25.58.
The FTSE 100 endured a flat start to the day, up only 4.02 points to 7,408.15 by late morning.
British Land gained 19½p to 623p after announcing a £300 million share buyback. The news lifted others in the property sector. Land Securities rose by 22p to £10.32 and Great Portland Estates picking up 13½p to 612p.
The City was reassured by Royal Mail’s half-year performance. Its shares rose by 12½p to 411¼p after it said that revenues had been boosted by the general election. “Royal Mail’s international division came to the rescue of a mixed performance in the UK, and with further progress on cost reduction evident, it looks like the firm has managed to win over investors,” Chris Beauchamp, chief market commentator at IG, said.
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The FTSE 250 advanced 56.1 points, or 0.29 per cent, to 19,576.69. Carillion led the risers for another day, picking up 8½p to 75½p after reporting more contract wins following last week’s dire profits warning. Dairy Crest, which produces Cathedral City cheese and Frijj milk, picked up 21p to 578p after updating the market.
Melrose Industries shed 7p to 233½p after Exane BNP Paribas downgraded from “outperform” to “neutral”. Nostrum Oil & Gas was also under pressure, shedding 10½p to 419½p.