# European airlines see travel withstanding consumer squeeze for now Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-13 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: British Airways-owner IAG, Ryanair, and easyJet report Meta Description: Major airlines IAG, Ryanair, and easyJet report resilient demand for travel, with bookings and fares exceeding expectations, providing a positive outlook for URL: https://financedigest.com/european-airlines-see-travel-withstanding-consumer-squeeze-for-nowhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-13t141101z2lynxmpei9c0rzrtroptp4ryanair-strike-spain-1736815031928-compressed.jpg) By Sarah Young and Klaus Lauer LONDON (Reuters) – British Airways-owner IAG, Europe’s biggest airline Ryanair and rival easyJet said demand for travel was holding up, calming worries that pressure on household budgets could stall aviation’s recovery from the pandemic. Australia’s Qantas Airways Ltd also said on Thursday it was seeing consumers willing to pay higher fares despite rising inflation and interest rates. [Shares in IAG jumped as much as 10% after an unscheduled announcement on Thursday to report better than expected profit for its summer quarter and a confident outlook](https://www.financedigest.com/britains-next-sees-lower-clothing-inflation-shares-dip-on-cautious-outlook.html "Britain’s Next sees lower clothing inflation, shares dip on cautious outlook"). Meanwhile, Ryanair said its bookings for the northern hemisphere autumn mid-term and Christmas holidays are ahead of pre-COVID [levels and it sees](https://www.financedigest.com/fraport-sees-2023-passenger-traffic-at-80-90-of-pre-pandemic-levels.html "Fraport sees 2023 passenger traffic at 80-90% of pre-pandemic levels") average fares rising by more than expected until the end of March. In Europe, most airline stocks have plunged over the last six months, some by as much as 50%, over [worries that rising household bills](https://www.financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zero.html "44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero") will dampen appetite for travel. But the airlines [injected optimism back into the market](https://www.financedigest.com/lyophilized-injectable-market-latest-trends-and-future-growth-study-by-2031.html "Lyophilized Injectable Market – Latest Trends and Future Growth Study by 2031") on Thursday. IAG, which also owns the Aer Lingus, Iberia and Vueling airlines, said forward [bookings remain at expected levels for this time](https://www.financedigest.com/best-selling-books-of-all-time.html "Best selling books of all time") of year “with no indication of weakness. CAUSE FOR OPTIMISM Johan Lundgren, chief executive of easyJet which had earlier issued [forecasts for its annual](https://www.financedigest.com/britains-kingfisher-sees-annual-profit-towards-higher-end-of-forecasts.html "Britain’s Kingfisher sees annual profit towards higher end of forecasts") results, was more cautious, saying that there was “uncertainty out there”, but the low-cost operator also said there was cause for optimism. Despite the difficulties that households have, we still know that holidays and travel are [top of the list](https://www.financedigest.com/the-secret-to-academic-success-colouring-in-oxford-and-cambridge-residents-top-the-list-of-crayon-wielding-adults.html "The secret to academic success? Colouring in! Oxford and Cambridge residents top the list of crayon wielding adults") when people can prioritise what they want to do with their disposable income,” he told reporters. For Britain’s October school holiday and the Christmas week, easyJet said ticket [sales exceeded pre-pandemic levels and load factors – a measure of seats filled – for winter](https://www.financedigest.com/uk-retailers-turn-positive-on-sales-hopes-after-bleak-winter.html "UK retailers turn positive on sales hopes after bleak winter") bookings and pricing were robust. Analysts [noted that the strength of the dollar against the pound and the euro lately](https://www.financedigest.com/in-loving-and-devoted-memory-king-charles-handwritten-note-to-late-queen.html "‘In loving and devoted memory’: King Charles handwritten note to late queen") has made it cheaper for American visitors to come to Britain and Europe, a particular boost for IAG which has a large exposure to the transatlantic market. Ryanair’s chief executive Michael O’Leary said that demand appeared to be supported by savings built up during the pandemic but he sounded a note of caution over how long that could endure, [saying he does expect that customers’ disposable income will get hit by increases in interest rates and the cost of living further into the northern hemisphere winter](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says"). That was echoed by [Hargreaves Lansdown](https://www.financedigest.com/uks-hargreaves-lansdown-ceo-hill-to-step-down.html "UK’s Hargreaves Lansdown CEO Hill to step down") equity analyst Sophie Lund-Yates who said IAG’s upgrade was “a very welcome surprise, but whether the spritely mood music can be maintained is another question entirely. (Writing by Sarah Young; Editing by Emelia Sithole-Matarise) --- This blog is powered by Superblog. 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