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.
Ryanair Holdings Plc, the second- biggest buyer of Boeing Co. jets, plans to work with China on the C919 plane that the country is designing to challenge the U.S. manufacturer and its rival Airbus SAS in the single-aisle market, a person with direct knowledge of the talks said.
Deutsche Lufthansa AG said routes dropped by budget rival Air Berlin Plc are unlikely to be a good fit for its network, while leading discount operators Ryanair Holdings Plc and EasyJet Plc have no plans to add German bases.
Etihad Airways agreed to provide Air Berlin Plc with $350 million in equity financing and funds for planes, helping the German carrier to ride out the slowdown and boosting the Gulf company’s challenge to Deutsche Lufthansa AG.