European airline shares defy the turbulence to keep on climbing higher

Despite the outrage British Airways faced when its yet to be explained computer meltdown ruined the plans of thousands of travellers stranded at airports for a UK bank holiday, the shares of its IAG owner have barely flickered.

Playing catch-up with the Madrid stock exchange, IAG shares in London fell only 2.5%. Having soared 36% since the start of the year and now up 15% from this time last year, the BA-Aer Lingus-Iberia-and Veuling group is valued at £12.53bn (€14.4bn).

British Airways flew “through the turbulence”, said Chris Beauchamp, chief market strategist at online broker IG, who said the modest share price fall barely ruffled investors focused on the airline’s “strong” operating margin and a still-appealing dividend yield.