European airlines are becoming more cautious about adding capacity, with several carriers, including Deutsche Lufthansa and Ryanair, trimming their summer flight schedules, Bank of America analysts say in a research note. While this has slightly reduced expectations for overall capacity growth across Europe, the adjustments appear measured rather than a sign of weakening demand, the analysts add. Short-haul booking trends have improved in recent weeks and as demand is recovering, there is potential for low-cost carriers to outperform current guidance, they add. Moreover, booking patterns are returning to normal after being disrupted by geopolitical uncertainty, suggesting consumer confidence is gradually improving ahead of the peak summer travel season, they say. Lufthansa and Ryanair shares trade 1.8% lower and 0.8% lower, respectively. (nina.kienle@wsj.com)
Dow Jones Newswires
European Airlines' Caution to Add Capacity Isn't Sign of Weak Demand — Market Talk
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European airlines are becoming more cautious about adding capacity, with several carriers, including Deutsche Lufthansa and Ryanair, trimming their summer flight schedules, Bank of America analysts say in a research note. While this has slightly reduced expectations for overall capacity growth acro…