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Bankruptcy Risk Seen Higher for Europe’s Airlines This Winter

Europe’s weaker airlines face a heightened risk of collapse this winter as nations that rescued carriers during the Covid crisis focus support elsewhere amid rising inflation, according to analysts at Sanford C. Bernstein.

While the pandemic brought few airline failures in the region amid a deluge of aid payments, carriers now face a squeeze from higher fuel and labor costs combined with a seasonal decline in travel, Bernstein said in an investor note Monday. That’s just as governments struggle to respond to soaring household bills.