Shares in Europe's airline groups plummet on back of profit warning from Lufthansa

Shares in Europe's leading airline groups - including Ryanair and Aer Lingus-owner IAG - plummeted on the back of a profit warning from German carrier Lufthansa.

Late on Sunday, Lufthansa forecast annual earnings, before interest and tax, of between €2bn and €2.4bn. That was down on the previously targeted range of between €2.4bn and €3bn. Lower fare prices and higher fuel costs have compounded the effect of losses at its budget subsidiary Eurowings, the German airline group said.