KLM, on the back of promising fourth quarter results, is hoping for even more of a tailwind this year from an unlikely source: American TV shows such as 'Emily in Paris' that have boosted the allure of the French capital.

Lufthansa bounced back with a recovery in the second half of 2024 thanks to strong demand and lower fuel costs that lifted its shares on Thursday following a difficult year impacted by costly strikes and industry-wide delivery delays.

Europe’s flag carrier scene is becoming less of a one-horse race. Deutsche Lufthansa and Air France-KLM shares leapt on Thursday after strong finishes to the year, closing the gap with bigger $20 billion rival IAG .

KLM's results on Thursday showed signs the airlines were on the road to recovery, with strong demand and a brighter outlook for 2025 helping send their shares to the highest levels in years. Strong passenger numbers and lower fuel costs helped the airlines beat analyst expectations in the fourth quarter,

Air France-KLM has had positive discussions with the Portuguese government about its possible participation in a privatisation of flag carrier TAP, and would agree to preserve its brand, network, and local jobs,

The trend towards more bite size deals and tie-ups marks a shift for the region's carriers, which are trying to unify a fragmented market to compete with rivals in a more consolidated U.S. market and state-funded behemoths in the Middle East.

German airline giant Lufthansa said Thursday its 2024 profits dived during a turbulent year marked by strikes, rising costs and delayed aircraft deliveries, as a post-pandemic rebound petered out.

US and European airlines have reported that high-spending holidaymakers are replacing corporate travellers in their most expensive seats. But Smith said Air France’s links with Paris, a city synonymous with luxury brands, mean it is in a strong position to capture this demand for premium leisure.