British Airways owner IAG gave investors a nice surprise earlier this month when it revealed trading had been better than expected and operating profits for the three months to end-September would be €1.2bn.
That was miles ahead of consensus forecasts of around €820mln and the airline owner also stated bookings were good with no signs of weakness.
The upbeat comments have sparked a near 20% share price rise since but can it last is the ever-present worry not just over IAG but the airline industry overall.
Recession presumably will affect people’s travel plans, while Peel Hunt points to sustained high oil costs, cost inflation and €20bn of gross debt and leases in a rising rate environment as other areas of concern.