European airlines flew into the headlines on a busy day for corporate news from the sector. SAirGroup remained volatile, soaring almost 9 per cent early in the day on news that the troubled aviation conglomerate had raised more than 500 million Swiss francs from the sale of its 23 luxury Swissotel properties to Singapore's Raffles Holdings.
Subsequently, the shares, which had lost more than half their value this year, gave back the gains to close 4.1 per cent lower on the day at 104.50 francs as worries about tomorrow's shareholders' meeting resurfaced.
Italian flag carrier Alitalia was sharply higher after Italy's transport Minister said an alliance between the airline and Air France was "days away" and would be finalised by mid-May. Later, however, the Italian Treasury said the airline was not giving precedence to Air France and no deal was imminent.
Germany's Lufthansa edged to €22 on news that first-quarter passenger numbers rose 5.8 per cent.
Telecom, media and technology stocks remained at the centre of attention on the bourses.
Telecoms equipment heavyweight Ericsson dropped 5.9 per cent to 55.50 Swedish kroner, adding to Friday's 14.5 per cent slump when it reported poor first-quarter results and issued an even gloomier outlook. At least three investment banks lowered their earnings expectations for Ericsson.
Among the telecoms providers, Deutsche Telekom slid 1.7 per cent to €28.95 as the market prepared for results today.
German software group NSE Software soared 28.7 per cent to €1.30 as news of a new chief executive raised hopes among retail investors of a turnaround.
Spain's biggest blue chips, Telefonica and BBVA, both with heavy exposure to Latin America, were hit by Sunday's news that Argentina would suspend an important $700 million treasury bonds and bill issue until May. Telefonica fell 6.2 per cent to €18.25 and BBVA was 1.5 per cent lower at €14.96.
