Lufthansa reversed a three-month-old profit warning and discount rival Norwegian Air Shuttle reported record quarterly earnings as European airlines show they're weathering the effects of terrorist attacks, sluggish economies and the UK's surprise Brexit vote.
Lufthansa stock jumped 10 per cent, the most in eight years, after the German carrier raised its full-year profit forecast, citing improved premium bookings, while Norwegian Air gained 7.7 per cent, saying it’s “doing fine” on long-haul routes.
Ryanair is trading at a one-month high after this week issuing a guidance cut said to be "mild" by Cantor Fitzgerald analyst Rob Byde.
Airlines from the Mediterranean to Scandinavia have been battling excess capacity and falling fares as a spree of terrorist killings weighs on travel and Britain’s June 23rd decision to quit the European Union compounds concerns about stuttering growth.
Air France-KLM Group also rose 6 per cent Thursday, and the BI Europe Airlines Top Peers index had its strongest day since July 14th.
– Bloomberg