Qantas Airways has posted a record $2.8bn (€1.06bn) loss, reflecting a profit-draining battle with its smaller rival Virgin Australia and aircraft write-downs.

Huge ash clouds caused by an Indonesian volcano have forced airlines to cancel flights to and from Darwin in northern Australia.

An Australian passenger mistook the cockpit door for the toilet, triggering Friday’s hijack scare on a Virgin Australia flight from Brisbane to the Indonesian holiday island of Bali, police said.

A drunk male passenger triggered a hijacking scare yesterday when he tried to break into the cockpit of a Virgin Australia jet flying from Brisbane to the Indonesian holiday island of Bali.

A drunk passenger who caused a hijack scare on a Virgin Australia flight by trying to break into the cockpit has been arrested.

Qantas Airways says it will shed 5,000 jobs as it posted a first-half loss of AUD $235m (€153m) amid tougher competition, sending its shares down more than 7%.

An explosive volcanic eruption on Indonesia’s most populous island has blasted ash and debris 18kms into the air, killing two people while forcing authorities to evacuate more than 100,000 and close six airports.

Datalex has forecast “strong cash generation” and continued profit growth for 2013, following the generation of its first annual profit in six years in 2012.

Dublin-based international travel software provider Datalex has forecast earnings growth of between 25% and 30% for this year, on the back of reporting its first profit in six years.

Etihad Airways has seen its profits treble to $42m (€31m) on the back of partnerships with other airlines and cost-cutting measures.

Net profits at Abu Dhabi’s Etihad Airways trebled last year to $42m (€30.8m) as the group added new routes and passenger numbers topped 10 million for the first time.

Gulf carrier Etihad Airways said it is interested in buying Ryanair’s near 30% stake in Aer Lingus but as yet has not entered into any talks with the airline.

Australia’s air safety authority cleared Qantas Airways to resume flying today, after it grounded its entire fleet amid a bitter union dispute.

RBS Aviation Capital has entered into an agreement with Aer Lingus for the lease of four A319-100s, two of which will enter service with the airline next year, with the remaining two joining in 2013.

International and domestic flights through Australian airports were cancelled today as an ash cloud from a Chilean volcano moved into the country’s airspace.

Australian airlines are starting to fly to New Zealand again after a volcanic ash cloud from Chile grounded hundreds of flights.

Airlines started flying a backlog of thousands of stranded passengers to and from Australia’s second-largest city today after an ash cloud from a Chilean volcano began to clear.

Thousands of passengers in Australia and New Zealand were affected when airlines suspended flights today as an ash cloud from an erupting volcano in southern Chile spread, threatening to damage engines.