Transatlantic travel sets up European airlines for bumper earnings

North American tourists thronging the streets of Europe's top destinations are set to fuel healthy earnings for airlines this quarter and onwards as they enjoy travelling after long pandemic lockdowns, analysts and aviation executives said. With Air France-KLM, Lufthansa, British Airways-owner IAG and others due to report in the coming weeks, analysts are watching to see how much - and for how long - European carriers will benefit from this US demand. A renewed desire to travel has already sent bookings at US carriers soaring, despite rising living costs. Delta posted the highest quarterly earnings in its history in the June quarter, helped by a 65% jump in revenue from transatlantic flights. Travel website Kayak said searches for travel to Europe are up 55% from a year ago. While demand tends to slow down after the summer, US airline executives say bookings are extending into the autumn season. Analysts see a boost for European carriers as well. "The greatest upside should be at IAG. As with other network carriers, it benefits from high demand on the North Atlantic (routes)," said Alex Irving, an analyst at Bernstein. "However, the supply picture is also the most improved." Virgin Atlantic's commercial chief Juha Jarvinen said it is seeing "record monthly revenues, as consumers choose to spend on experiences over goods".<br/>