European Airline Stocks Hit Turbulence as Air France-KLM Cuts Earnings Target
European stocks continued to lose steam on Tuesday, as disappointing corporate news and an unexpected U.K. manufacturing slump caused some jitters. Airline shares across Europe posted declines after Air France-KLM Group cut its full-year profit forecast to €2.2 billion to €2.3 billion, down from at least €2.5 billion, amid overcapacity on North American and Asian long-haul routes. Other carriers also declined including International Consolidated Airlines Group SA and easyjet plc in London, and Deutsche Lufthansa AG in Frankfurt. Retailer Marks & Spencer plc fell in London after posting its 12th-straight quarterly drop in non-food sales. Asian stocks were mixed. Samsung Electronics Ltd. got a slight boost after saying it “cautiously expects” a better third-quarter when it plans to introduce its curved-screen Galaxy Note 4 phone.
