European carriers continued to post year-on-year gains in passenger numbers and load factors across their short-haul networks in Sep-2011, with a few exceptions. Europe has posted surprisingly strong traffic results throughout 2011, in spite of weaker local business and consumer conditions. IATA (which represents only full-service carriers) noted in Aug-2011 that “cross-border travel within Europe has held up remarkably well”.

The good times continued to roll for most short-haul carriers in Sep-2011. On the earnings side, however, the outlook is mixed, with several European airlines expanding on their short-term expectations over the past month.