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.

European network carriers including Air France-KLM Group and Deutsche Lufthansa face a heightened challenge from Ryanair-led discount airlines and Gulf operators serving routes to Asia, analysis by Amadeus IT Holding SA shows.

European aviation stocks declined, following a drop among Asian carriers, on concern an outbreak of the bird-flu virus in China will clip travel and hurt demand already unsettled by rising military tensions with North Korea.

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.

International Consolidated Airlines Group said profit doubled in the first year of its formation via a merger of British Airways and Spain’s Iberia, spurred by demand for business travel on BA’s North Atlantic routes.

German airline Lufthansa is to resume its regular flights to the Libyan capital.

BRITISH stocks climbed for the fifth day in six amid speculation the US Federal Reserve may announce more stimulus measures to help drive the world’s largest economy.

PRE-TAX profits at the Irish-based Lufthansa owned aircraft overhaul and leasing group last year dropped by 18%, to $23 million (€17.6m), figures show.

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.

RYANAIR wants to reach an agreement to purchase 200 aircraft by the end of the year in a deal that could be worth close to €9 billion.

RYANAIR boss Michael O’Leary believes the BBC’s investigative Panorama programme is to broadcast a “hatchet job” on the Irish airline tonight.

AER LINGUS said it has no immediate plans to lower its fuel surcharges despite a significant decline in the price of oil.

RYANAIR will probably be the only airline in the world that will see improved profits in 2009.

RYANAIR is on course to secure a significant court victory in Germany over rival Lufthansa.

SHARES in Ryanair fell as much as 7.5% on market talk of a profit warning after Morgan Stanley cut its price target on Europe’s biggest low-cost airline, traders and analysts said.

German stocks including Deutsche Lufthansa rose. Europe’s second-largest airline said it’s close to a takeover of Swiss International Air Lines.

BRITISH AIRWAYS, Europe’s largest airline by passenger numbers, may revive a plan to merge with AMR Corp’s American Airlines if regulators allow Air France to take over KLM Royal Dutch Airlines .

THERE should be little immediate impact on Aer Lingus and Ryanair following the merger of Air France and Dutch carrier KLM to create Europe’s biggest airline, analysts predicted last night.

German national carrier Deutsche Lufthansa AG has posted a second-quarter operating profit of €65m, up from a loss of €415m in the first quarter, but said it still expects a full-year operating loss.

Lufthansa is to be the first airline company worldwide to introduce broadband internet on board its entire long-haul fleet.