European airlines Air France-KLM and IAG are poised for strong quarterly results, according to J.P. Morgan analysts. Air France-KLM is seen as having significant potential to beat estimates, driven by robust revenue trends and sustained international travel demand. Analysts anticipate strong pricing power on long-haul routes, particularly from premium customers, will largely counter rising fuel expenses. Falling jet fuel prices are also expected to boost profitability, with Air France-KLM shares trading up 4.9% to 14.07 euros.

Similarly, IAG, the owner of British Airways, is projected to slightly surpass consensus forecasts for its second-quarter earnings. Resilient passenger demand and effective pricing, especially on lucrative long-haul markets like the North Atlantic, Latin America, and Asia, are expected to mitigate cost pressures. Lower jet fuel prices should further enhance earnings in the latter half of the year, with analysts predicting strong free cash flow and profitability for IAG. IAG shares saw a modest 0.2% increase to 485.2 pence.

In the defense sector, German ship and submarine builder TKMS has seen its future growth prospects significantly brighten after Canada selected it as the preferred supplier for 12 conventional submarines. Deutsche Bank notes this potential multi-billion euro contract could nearly double TKMS's order backlog to approximately 40 billion euros, offering distinct growth visibility compared to competitors. TKMS shares closed at 93.30 euros.