British airline, EasyJet is giving an increased forecast for upcoming full-year earnings in the latest indication of the success of its low-cost model. The forecast has spurred hopes of a lucrative reward to shareholders.

Budget airline easyJet was counting the cost of unrest and political tensions affecting Israel, Egypt and Russia after its latest trading update prompted the City to scale back forecasts for annual profits.

Air France-KLM sent a further shiver through the airline sector today when it slashed full-year profit forecasts due to overcapacity on its US routes.

British Airways and Iberia owner International Airlines Group (IAG) lifted nearly 7% today as the business posted better-than-expected results.

The owner of British Airways posted another big loss today but insisted a painful restructuring at Spanish carrier Iberia was starting to pay off.