Air France-KLM said its operating profit rose 16% in the second quarter as new chief executive Ben Smith’s cost-cutting helped offset rising fuel prices, sending its shares higher.

Virgin AtlanticVirgin Atlantic has posted its second consecutive year in the red as the airline was hit by the Brexit-hit pound, economic uncertainty and engine woes.

Shares in struggling British regional airline Flybe soared as much as 115% after it said it had received an alternative financing offer aimed at keeping it in business.

By Christopher Jasper and Chiara Albanese

The world’s 10 leading airlines pulled in a combined $29.7bn (€25.4bn) from ancillary revenues last year, further underlining the importance of non-air fare income streams for the aviation industry.

Air France’s new daily flight from Cork to Paris will open up a vast long-haul network to Irish passengers and boost inbound tourist numbers to the south.

Major airline groups including Aer Lingus owner IAG have reported strong earnings for the first half of the year, boosting faith in a sector which is finally taking off for investors.

Cautious comments by British budget airline Easyjet on the outlook for summer pricing hit its shares and those of rival airlines yesterday, overshadowing an increased profit target after a strong quarter.

Ryanair will soon offer connections to destinations including New York and Havana, as the budget carrier widens its network of longhaul partners with a deal with Spain’s Air Europa.

Aer Lingus saw a near 27% increase in passenger numbers last month, starting the second quarter of the year strongly after parent group IAG reported solid earnings for the first three months.

After years of losing business to discount airlines, the major carriers in Europe are gaining strength and outperforming in stock markets.

Air France-KLM Group, British Airways and a handful of other carriers may face multimillion antitrust fines from EU regulators within weeks after attempts to broker a settlement failed.

Air France-KLM joined other European airlines in warning of the impact on revenue this year of recent attacks in France and political upheaval elsewhere as it reported a drop in sales and braced for a strike by its staff.

British budget airline EasyJet said strong demand for beach holidays was making up for a drop in travelling in the wake of recent terrorist attacks in Europe, and raised its dividend in a sign of its confidence.

Air France-KLM posted a stronger-than-expected recovery in the first quarter due in part to low oil prices, but warned of geopolitical risks and airline overcapacity while reaffirming its targets for the year.

Shares in Air France-KLM fell the most since 2014, as the surprise exit of chief executive Alexandre de Juniac after just three years in the top job created a power vacuum that puts Europe’s biggest carrier at the mercy of unions implacably opposed to cost-cutting plans.

CityJet founder Pat Byrne has said the airline’s transformation will be helped by greater access to credit after sealing a deal to buy the airline from its German owner, with the help of investors.

Investors sought out the safe haven of gold as stock markets dipped and tourism shares dropped in the aftermath of the attacks on Brussels.

Shares in Air France-KLM soared to a nine-year high yesterday, on the back of Europe’s largest airline group reporting its first annual profit since 2010.

Skies full of drones, easier security checks for passengers, and global airlines are the future of the aviation industry according to a new strategy put forward by the European Commission.

Union activists protesting against proposed layoffs at Air France stormed the headquarters during a meeting, zeroing in on two managers who had their shirts torn from their bodies, scaled a fence and fled under police protection.

IAG is set to complete its takeover of Aer Lingus after Ryanair said it would accept the offer and a source familiar with the matter told Reuters the British Airways-owner would gain conditional EU approval.

Lufthansa pilots began the first of two days of strike action yesterday in a long-running dispute over early retirement benefits and cost-cutting plans which shows no sign of ending.

Tánaiste Joan Burton has warned that protecting Ireland's air links with Europe and the US is of vital importance if a deal to sell Aer Lingus to International Airlines Group (IAG) is to go through.

A fresh attempt by the owner of British Airways to buy Aer Lingus has been rejected by the board of the Dublin-based carrier, it emerged last night.

The owner of British Airways has made an approach to buy Dublin-based carrier Aer Lingus, it was revealed today.

British low-cost airline EasyJet yesterday reported a small rise in its winter bookings, shrugging off fears about an increasingly competitive European travel market.

Ryanair predicted it will reach the upper end of its earnings projection this fiscal year.

Air France-KLM sent a further shiver through the airline sector today when it slashed full-year profit forecasts due to overcapacity on its US routes.

Lufthansa says it is working hard in a difficult market to recoup earnings lost through strikes as it reported a narrower first-quarter loss yesterday.

Ryanair has not offered to take part in Italian airline Alitalia’s poorly received €300m capital increase, the chief executive said yesterday.

Michael O’Leary, who built Ryanair into Europe’s biggest discount airline over two decades, pledged to stay another five years and render its dominance complete as competitors exit short-haul flying.

Air France-KLM says its losses mounted sharply in the first quarter compared with a year earlier, when earnings were boosted by a gain in the value of oil price hedging contracts the airline uses to manage its fuel costs.

Ryanair passenger figures were down by 50,000 as the airline grounded up to 80 aircraft following the Christmas period.

Richard Branson retained control of his airline Virgin Atlantic today after a deal that will see America’s largest carrier take a 49% stake.

Richard Branson has said he is prepared to bet the boss of British Airways £1m (€1.25m) that Virgin Atlantic will not disappear within five years.

Speculation over Richard Branson’s control of Virgin Atlantic grew today after Singapore Airlines confirmed it was in talks over the sale of its stake in the transatlantic airline.

Air France-KLM said today that its net loss ballooned to nearly €900m in the second quarter after it took a hefty charge to pay for restructuring which will see it shed about 10% of its workforce.

Air France says it is aiming to reduce staff numbers by more than 10% – 5,000 employees – after a sustained slide in income.