Europe’s low-fare airlines are starting to see increasing turmoil after years of speculation that their overabundance will lead to a shakeout as the contenders struggle for financial viability. Investor anxiety also is coming to the fore. For instance, EasyJet reported an almost 10% increase in year-on-year December traffic, but load factors fell 2.2 percentage points to 78.9%. That led Deutsche Bank to slash its earnings projection for the low-fare carrier. The airline’s stock also ...

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