Air France-KLM Group and Deutsche Lufthansa AG, Europe’s two biggest airlines, are struggling to reach earnings goals as a stronger euro and sluggish economic growth wipe out the benefits of sweeping savings programs.
Even before sealing a merger of British Airways and Spain’s Iberia, Willie Walsh, the deal’s architect, said he had 12 more targets in his sights. Eighteen months later, he may have more opportunities than he can handle.
Bankia SA, the Spanish banking group bailed out by the government last year, said it has sold its stake in British Airways parent IAG SA, exiting a holding obtained in the 2011 merger of the U.K. airline with Iberia.
Deutsche Post AG, Europe’s largest postal service, reported profit that beat analysts’ predictions because of growth at express-delivery businesses abroad, sending the stock to the highest in almost five years.