“The European Airline sector has performed negatively (Eurotop 300 is flat vs the MSCI EU airlines down c2%) due to negative earnings momentum,” said analyst Jarrod Castle.
“However, if summer delivers despite oil price increase we think the airlines can still end the year in positive territory.”
UBS, in a statistical analysis of the sector, highlighted that data suggests that long haul capacity across the sector will grow in the third quarter by 7.5%, while short haul will increase by 4.5% - and that both figures are below market expectations.
At the same time, the data from airlines covered by UBS suggests 4.4% average growth.
In Thursday’s deals, Ryanair shares gained 0.96% to trade at €15.80 and easyJet advanced 1.21% to 1,678p.