1040 GMT - European airlines will deliver another year of market-beating growth in 2026, Morgan Stanley analysts say. British Airways owner International Airlines Group will benefit from limited transatlantic supply, while German carrier Lufthansa earnings will grow on a turnaround plan as well as a reduction in borrowing, the analysts write. On the other hand, easyJet faces profitability pressure in the short term and won't meaningfully recover its earnings performance until 2027, the analysts say. Lufthansa climbs 1.8%, though easyJet and Wizz Air fall 3.2% and 4.6%, respectively. IAG falls 2.55%. Fraport, which climbs 2%, will benefit from Frankfurt capacity growth, they add. (josephmichael.stonor@wsj.com)

(END) Dow Jones Newswires

January 07, 2026 05:39 ET (10:39 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.