Global Airport News

Britain's private aviation services provider Air Partner Plc said on Friday it expects profits for the year ending July to be below market expectations, citing reduced demand and weaker pricing.

"While forward orders are currently 31 percent lower than the same period last year, poor visibility continues to hamper the group's ability to forecast," said the company, which supplies planes to world governments as well as the super-rich.

Brokerage Oriel Securities cuts its recommendation on the stock to "add" from "buy", saying the stock is for investors with a longer-term focus.

"As ever, short-term forecast uncertainty exists, and whilst there could be an improvement in the final eight weeks of the year, we cautiously downgrade our full-year 2009 pretax profit forecast from 4.6 million pounds to 3.3 million pounds," Oriel said.

Daniel Stewart also cut its pretax profit estimate for the company for the current year to 4.4 million pounds from 5.4 million.

Group sales are currently down 15 percent, with sales in the UK — which represents half of its activity — down 22 percent due to short-term adverse pricing, the company said.

Air Partner said its private jet operating unit based at Biggin Hill had converted last year's earnings into a substantial loss, due to reduced demand and weaker pricing, overlaid onto fixed costs.

"Our first guess is that (the unit) will lose about 1 million pounds for the full year," Daniel Stewart said.

Air Partner, which continues to be debt free with 18 million pounds ($29.03 million) in cash, said it has taken action to significantly cut costs at Biggin Hill airport, which would positively impact the next financial year.

Air Partner shares were down 61 pence at 500 pence at 0945 GMT on the London Stock Exchange. The shares fell as much as 15 percent in early trade. ($1=.6200 Pound