Ryanair says it is luring more business passengers from established airlines as travellers shun higher fares and benefit from perks such as allocated seating.

The International Air Transport Association raised its 2012 global airline profit forecast 37% as carriers slow capacity growth to cope with higher fuel prices and waning travel demand.

RYANAIR, Europe’s biggest low-cost airline, said that its annual profit beat its forecast, sending the stock to the highest level in more than two years.

European Union governments have set a common limit on airline crews’ working hours that labour groups say will increase accident risks because it is too lax.