Confidence is gradually returning to the markets
Confidence is returning to the markets, and to the american household. However, in every single past recession, the improvement in the economy lags the improvement in the stock market by as much as 6 to 8 months. Which means the earliest the economy might start to recover is late autumn, beginning of the winter, perhaps even later. Therefore market conditions in Europe will continue to deteriorate at least through the summer. People will not fly, and if they do, will not spend on ancilliaries. Hence the pressure put on the workforce by both FR and EZY.
In my opinion the legacy carriers will benefit first from the upturn, especially on the long haul sector, as soon as the american and Chinese economies recover.
Finally, the cuts in investments and oil production from OPEC will force fuel prices back towards the 80 to 100$ mark as soon as the upturn is well established. If they are not careful, LCC, after a disastrous summer, and a mediocre winter, could be left with their pants down. This is a pessimistic scenario, but it is meant to counter the myth that the LCC are actually benefiting from the downturn. They are not. Nobody is.