LONDON, Oct 26 Reuters Europe39;s major airlines are set for another bumper quarterly earnings season after a summer of record postpandemic travel, but turmoil in Israel, the spillover impact on oil prices and worries about a global recession may cloud the outlook.

Strong earnings growth for the third quarter will be driven by a busy summer and strong demand projected for the rest of the year even as inflation remains high and fuel prices rise, analysts say.

The Atlantic has been very strong in particular …. IntraEuropean travel has been doing very well, said aviation analyst James Halstead, adding that limited planes meant ticket prices could stay high.

You39;ve got a squeeze on capacity at the same time as strong underlying demand.

Britain39;s easyJet said earlier this month it wanted to more than double profits and expand its fleet, even though fuel prices could mean higher ticket prices.

But heightened geopolitical instability following attacks by Palestinian group Hamas in Israel on Oct. 7, which has led to flight cancellations, higher oil prices and worries over consumer sentiment in Europe, could weigh on airlines39; outlooks.

For the third quarter, Air FranceKLM is expected to report operating income of 1.37 billion euros 1.45 billion, up 33 from last year, according to a companyprovided consensus. Revenue is tipped to rise 7 to 8.7 billion.

IAG39;s operating results before exceptional items are seen at 1.55 billion euros, up 28 from a year ago, while…