KBRA: European airline market 'ripe for further consolidation'
Kroll Bond Rating Agency (KBRA) reported (12-Jun-2019) it expects the European passenger airline market to remain challenged due to oversaturation, declining passenger yields, and volatile fuel and foreign currency exchange costs. It stated profitability growth in the region has started to stagnate and is forecast to decline in 2019, though will still remain at profitable levels despite headwinds. The agency noted headwinds are more likely to be felt by specific business models at risk rather than across the board, and that airline exposure will vary based on business models, risk management and scale and economic conditions. KBRA also stated it sees the European airline sector as "ripe for further consolidation as larger carriers continue to absorb smaller ones in difficulty". [more - original PR]