European airlines’ cautious approach to capacity expansion is not a sign of weak demand

Bank of America analysts added that while this slightly lowers overall capacity growth expectations for Europe, these adjustments appear to be moderate rather than indicative of weak demand. They further noted that short-haul booking trends have improved in recent weeks, and with demand rebounding, low-cost airlines have the potential to perform better than currently expected. Additionally, they stated that booking patterns are returning to normal after being disrupted by geopolitical uncertainties, suggesting that consumer confidence is gradually improving as the peak summer travel season approaches.