Two major European airline groups flagged positive signs as they unveiled their first-half results last week, including new partnerships, rising profits and fares and successful launches. Their many challenges-—among them Brexit uncertainty, terrorism fears, excess capacity, low-cost carrier competition (now on long-haul and not just short-haul networks), and Gulf rivals—are not going to go away overnight, but Air France-KLM (AF-KLM) and British Airways parent IAG’s ...

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