By Blaise Robinson

PARIS (Reuters) - European stocks gained on Tuesday to snap a three-day losing streak thanks to a drop in oil prices and better than feared results from Societe Generale (SOGN.PA: Quote, Profile, Research) that lifted banks ahead of a U.S. rate decision.

Oil-sensitive airline stocks were among the biggest gainers as crude fell to a three-month low around $118 a barrel, calming recent fears over inflation and corporate costs. Ryanair (RYA.I: Quote, Profile, Research) rose 11 percent and British Airways (BAY.L: Quote, Profile, Research) added 5 percent, while Air France-KLM (AIRF.PA: Quote, Profile, Research), which posted better than expected earnings, gained 9.4 percent.

"It's really the fact that the oil price has gone below $120 a barrel, simple as that," says Neil Glynn, analyst at NCB Stockbrokers in Dublin.

Danish brewer Carlsberg (CARLb.CO: Quote, Profile, Research) soared 16 percent after posting forecast-beating second-quarter earnings. The solid results lifted shares in peers Heineken (HEIN.AS: Quote, Profile, Research) 5.1 percent and InBev INTB.BR 5.8 percent.

The FTSEurofirst 300 index of top European shares closed up 2.6 percent at 1,182.31 points. The index is down 22 percent on the year.

"It's quite good news from Societe Generale but overall this market rebound will be short-lived and I remain bearish on stocks," said Christian Jimenez, president of Imene Investment partners, in Paris.

"What you see on oil prices is a relatively excessive correction as the tropical storm won't hit Texas, but it doesn't mean fundamentals have improved. The retreat should not last very long," he said.

"The impact from the U.S. economic slowdown, as well as from downturns in Europe and in emerging markets, has not been completely priced in. I think the market will move sideways for a while, before revisiting recent lows."