Overcapacity, increasing oil prices, and uncertainties around Brexit are impacting the European airline industry.
The collapse of the 178-year old tour operator Thomas Cook (TCKGY) at the beginning of this week, with the help of a heavy debt load, is the latest remarkable illustration of these developments.
The low-cost U.K. carrier easyJet (OTCPK:EJTTF) (OTCQX:ESYJY) isn't immune to these challenges. During its first fiscal half-year, revenue per seat declined and costs increased.
But despite the impact of the challenges on easyJet's short-term results, the company will benefit from the situation.