Europe's weaker airlines face shakeout as oil shock tests finances

Europe’s weaker airlines are facing a potential shakeout as higher oil prices strain finances and expose fragile balance sheets. With renewed conflict in the Gulf pushing jet fuel costs up, investors and executives say some carriers may need restructurings, buyouts, or even bankruptcy protection. The report cites easyJet as nearing a US-led takeover that would take the 30-year-old airline private at a valuation far below its pre-pandemic peak, while airBaltic seeks short-term financing to avoid default and Norse Atlantic is reviewing its strategy. Last month, the global industry nearly halved its 2026 profit forecast, citing Middle East conflict and disrupted air corridors. Analysts warn that cash generation during the summer could decide survival, noting airlines often run out of funds in February. Airbus also revised downward its 20-year passenger aircraft demand outlook amid war and trade tensions.