Morgan Stanley writes on European Airlines today, under the title “Short Haul Pain, Long Haul Gain” IAG is their top pick; the British Airways and Iberia owner is listed in both London and Madrid. MS points to transatlantic strength and higher levels of profitability and cash flow at IAG. RYA Ryan Air is also rated as overweight. Despite yesterday’s bid talk, EasyJet EZJ LN is rated at underweight by the US bank, which also published a handy guide to earnings in the sector- See below.