1112 GMT - European airlines are enjoying stable demand overall, with premium cabins performing particularly well, Bernstein analysts Alex Irving and Antoine Madre say. Airlines are experiencing modest capacity growth in intra-European and Europe-North American markets, they say. Meanwhile, growth on routes to Asia and Latin America has moderated, they add. Cheap fuel--it costs about 5% less than the average levels of July and August last year--provides a continuing tailwind for airlines, they note. Overall, the sector's outlook is favorable, the analysts say. Their top pick is International Consolidated Airlines Group because it looks capable of the highest cash returns in the industry. Ryanair remains appealing, while Air France-KLM should post good quarterly results, they add. IAG is up 0.2%, Ryanair trades down 0.8% and Air France-KLM rises 1.2%. (cristina.gallardo@wsj.com)

(END) Dow Jones Newswires

July 09, 2025 07:13 ET (11:13 GMT)

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