Issue Summary

When Taylor Swift sings her song “Cruel Summer,” she’s most certainly not referring to European airlines. IAG, Air France-KLM, and TAP Air Portugal all reported spectacular third-quarter financial results, powered by scorching-hot transatlantic demand, and strong intercontinental demand more generally. Shorthaul flying within Europe was hardly a drag either – Air France-KLM’s Transavia and especially IAG’s Vueling performed exceptionally well (Vueling’s operating margin was 26%!). Success was only somewhat less striking in the Nordic region, where Finnair and the Icelandic startup Play each recorded 12% operating margins. Nothing cruel about their summers.