SES Surges 8% as EasyJet Struggles with Middle East Conflict

European stocks closed marginally higher on Thursday, with the pan-European Stoxx 600 index edging up after a volatile session. Markets were rattled by news that Iran's Supreme Leader ordered the country's near-weapons-grade uranium to not be sent abroad, complicating peace talks with the U.S. However, corporate news drove significant moves, with Luxembourg-based satellite operator SES jumping 8% and low-cost carrier EasyJet rising just 0.9% despite revealing the Middle East conflict has delayed bookings and heightened costs.

Space Sector Soars

The satellite and space sector was the standout performer on Thursday. Eutelsat, the Paris-headquartered global satellite operator, surged 22% ahead of Elon Musk-backed SpaceX's landmark IPO. The rally lifted other satellite stocks, including German company OHB and Luxembourg's SES, which closed up 8%. The sector's gains reflect investor optimism about the space industry's growth potential, with SpaceX potentially valued at a record-breaking $1.75 trillion at its IPO early next month. In contrast, Eutelsat has a market capitalization of just €4.05 billion ($4.7 billion), highlighting the vast gap between the European challenger and the U.S. leader.

EasyJet's Middle East Headwinds

EasyJet shares edged up 0.9% on Thursday, but the low-cost carrier's results painted a challenging picture. The airline reported a pre-tax loss of £552 million ($741 million) for the six months to March 31, widening from £394 million a year ago. The company cited the Middle East conflict as a key factor delaying bookings and increasing costs. This comes as the broader airline industry faces headwinds from geopolitical tensions and rising fuel prices. EasyJet's performance contrasts sharply with the space sector's rally, underscoring the divergent fortunes across European markets.

Other Notable Movers

Ubisoft, the French video game giant, recovered from heavy losses to close down just 2% after reporting an operating loss of €1.3 billion in its 2026 financial year. BT Group shares fell 4.9% after the telecoms company reported a 4% decline in adjusted revenue to £19.6 billion, driven by lower international revenue. These moves highlight the mixed earnings season in Europe, with companies exposed to geopolitical risks or structural challenges underperforming.

Market Outlook

The Stoxx 600's marginal gain on Thursday masks underlying volatility. The Iran uranium news added to geopolitical uncertainty, while the space sector's rally provided a bright spot. Investors are now watching for further developments in the Middle East and the upcoming SpaceX IPO, which could set the tone for global markets. For now, the divergence between the thriving satellite industry and struggling airlines like EasyJet suggests that sector-specific factors will continue to drive stock performance.

Key Takeaways

1. SES surged 8% amid a broader space sector rally led by Eutelsat's 22% jump ahead of SpaceX's IPO.
2. EasyJet rose only 0.9% as the Middle East conflict delayed bookings and increased costs, widening its half-year loss.
3. European stocks were volatile due to Iran's uranium decision, with the Stoxx 600 closing marginally higher.
4. Ubisoft and BT Group fell on disappointing earnings, while satellite stocks outperformed.

Sources: CNBC