European airlines fall after IATA profit projection slash

Deutsche Lufthansa AG

08/06/2026 08:42

** European airlines fall in Monday morning trading after the International Air Transport Association (IATA) slash its annual profit projections on fuel shock stemming from the U.S-Israeli war on Iran
** The body accounting for about 85% of global air traffic, nearly halved its 2026 forecast to a combined net profit of $23 billion from $41 billion guided previously
** IATA Director General Willie Walsh told Reuters that the main factors leading to slashing profit outlook were the spike in jet fuel prices and the disruption to the airlines in the Gulf Region
** "Brent crude is trading +4.32% higher at $97.11/bbl this morning following the escalating Middle East tensions", Deutsche Bank Research analysts say in a note
** Israel and Iran have been trading strikes, despite earlier announced ceasefire
** Paris-listed Air France KLM AIRF.PA and Germany's Lufthansa LHAG.DE fall around 3%, similarly to the Hungarian bang-for-buck carrier WizzAir WIZZ.L
** Easyjet EZJ.L and Ryanair RYA.I are down around 2% and 1%, respectively

 (Reporting by Mateusz Rabiega)
 ((mateusz.rabiega@thomsonreuters.com))