2017.08.1521:35:00UTC+00European Markets Climb as Airlines Buoyed Gains

European shares advanced on Tuesday, recovering further in holiday-thinned trading, as airlines buoyed gains after Air Berlin filed for insolvency, which caused Lufthansa as well as other peers to raise assets.

The pan-European STOXX 600 index rose 0.1 percent, with gains being limited due to a decline in basic resources and energy sectors after oil prices gave up previous gains.

European blue chips were up 0.3 percent as Germany's DAX climbed 0.2 percent. Italian and Austrian markets were closed for a holiday.

Travel and leisure stocks led advancers, higher by 0.8 percent in afternoon trading after Germany's second biggest airline Air Berlin plunged 32 percent.

Lufthansa was the best-performing European stock, climbing 4.7 percent, as budget peers EasyJet and Ryanair also gained. The German government announced that Lufthansa and another airline are in talks to take over some of Air Berlin's assets.

Schibsted was the largest decliner, off by 5.7 percent after touching an eight-month intraday low, after Facebook declared new marketplace services which analysts claim might threaten its classified business.

Second-quarter earnings season in Europe is moving to a close, as 83 percent of MSCI Europe companies have already posted earnings.