European airlines show a cautious attitude towards increasing capacity, which is not a sign of weak demand.

Bank analysts in the United States said in a research report that European airlines are becoming more cautious about increasing capacity, with several airlines including Lufthansa and Ryanair cutting back on their summer flight schedules. The analysts from the American bank added that while this slightly lowers expectations for overall capacity growth in Europe, these adjustments seem moderate and not a sign of weakening demand. They also noted that short-haul bookings have improved in recent weeks, and with demand picking up, low-cost airlines have the potential to perform better than current expectations. Additionally, they stated that booking patterns are returning to normal after being disrupted by geopolitical uncertainty, indicating that consumer confidence is gradually improving as the peak summer travel season approaches. The share prices of Lufthansa and Ryanair have recently fallen by 1.8% and 0.8% respectively.