Ryanair Holdings Plc, Europe’s biggest discount airline, predicted earnings will fall this year as a slowing European economy prevents it from increasing fares sufficiently to make up for surging jet-fuel costs.
Etihad Airways, the Middle East’s third-largest carrier, took a stake in Ireland’s Aer Lingus Group Plc as it extends a strategy of investing in European operators to help feed passengers via its hub in Abu Dhabi.
Airline-industry earnings suffered the first year-to-year decline for two years in the three months to June as fuel costs rose and capacity increases outstripped demand, the International Air Transport Association said.
The Airbus SAS-Boeing Co. airliner duopoly survived the Paris Air Show intact as challengers from Canada, China, Brazil and Russia offered little evidence that they’ll break the pair’s stranglehold on single-aisle jets.
Northern Foods Plc rose the most in two months after Greencore Group Plc said it recognizes “the importance attached by the Northern Foods board to the certainty of cash value in their decision to change their recommendation” on its merger offer.
Aer Lingus Group Plc , Ireland’s second-largest airline, said rising fuel prices will hold back earnings this year after higher fares and reduced spending helped the carrier post its first profit in three years.
Ryanair Holdings Plc plans to step up talks with Boeing Co. and China’s Comac as it seeks new planes to exploit gaps on short-haul routes likely to be left by a merger of British Airways with Deutsche Lufthansa AG’s BMI unit.