Hedge funds make £1bn in two weeks shorting airline shares 

Hedge funds have made more than £1bn in just two weeks by betting on the downfall of major airlines.

Billions of pounds have been wiped off the value of the likes of British Airways owner IAG, easyJet and Ryanair – despite airlines recouping some lost ground on Friday.

Around £100m has been made by investors placing short trades against IAG alone, according to analysis of figures compiled by IHS Markit.

Two investors from across the Atlantic have led the attack against easyJet – Citadel, founded by billionaire Ken Griffin, and secretive computer-driven fund AQR Management.

The two investment firms have also prospered by placing big bets against Air France-KLM and Europe’s biggest airline, Lufthansa.