European airlines surviving run of shocks

Lufthansa and Norwegian do well after months of gloom
European airlines appear to be shrugging off terror attacks, slow-moving economies and Brexit, as Lufthansa reverses a three-month-old profit warning while low-cost competitor Norwegian is reporting record quarterly earnings, Bloomberg writes.
Lufthansa has raised its full-year profit forecast, saying that premium bookings especially had improved. The news pushed its stock up 10%, the most in eight years.
Airlines across Europe have suffered in recent months from excess capacity and falling fares, caused by the above shocks.
But some carriers appear to be benefiting, with Norwegian chief executive Bjørn Kjos telling Bloomberg that cheaper pound sterling is boosting travel for example from the US to the UK.
“Clearly things are less bad than we had been thinking, and that goes not just for Lufthansa but for all the regular network airlines like Air France-KLM and IAG,” comments Yan Derocles, an analyst at Oddo Securities in Paris.
“Moreover, the capacity increases this fall are a bit weaker than what we’d seen in the summer, so that means there’s less pricing pressure.”