Strong Lufthansa traffic numbers lift IAG, Easyjet

Strong traffic figures from Deutsche Lufthansa lifted its shares and helped boost those of rivals including British Airways owner International Consolidated Airlines.

Lufthansa's total revenue in seat-kilometres soared 11% month-on-month in March, while capacity rose 9.9%.

The pricing environment was was said to be "slightly positive" on a currency-neutral basis.

Shares in Lufthansa were up 4.8%, carrying others European carriers in its wake.

In London IAG was up 3.5% to 547p, easyJet climbed more than 3% to 1,088.33p, Ryanair rose 1.4% to €15.49 and Wizz Air was up 1% to 1,722p.

On Monday, Air France-KLM also reported good numbers for March traffic and pricing.

Analysts at Exane BNP Paribas late on Monday, highlighting that movement in fuel pricing will "have a far greater impact on unit revenue than capacity", upgraded Lufthansa and reiterated its strong backing for IAG and lifting its target price 11% to 640p, as well as retaining support for Ryanair with an unchanged target of €17.

"Fuel price changes have an influence on capacity, and supply still needs to be considered as part of the outlook for airlines. We firmly stand by our view that European and global demand will remain stubbornly strong, notwithstanding the potential impact of geopolitical events," the note read.

"This should be supported by moderation in supply on key routes, suggesting the economics stack up well for a solid returns performance in 2017/18."