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.

Some of Michael O’Leary’s old swagger is back, writes Eamon Quinn.

By Eamon Quinn

Shares in Ryanair rose 5.5% as the airline’s pledge to win more passengers and to hit its earnings target reassured investors who have been spooked by the extraordinary turbulence facing the industry.

Irish Continental Group’s share price recovery continued yesterday with a near 3% gain on the back of the Irish Ferries owner announcing a €144m deal for its first newly built vessel in 15 years.

Ferry and freight services business Irish Continental Group (ICG) is expected to be debt free by the end of 2016.

Aer Lingus is confident of its ability to rival Ryanair for short-haul passenger growth over the remainder of the year and to meet operational goals after the completion of its takeover by British Airways owner, IAG.

A bumper opening quarter saw Ryanair profits surge 25% to €245m as the airline’s new softer image helped attract customers in ever-increasing numbers.

Shares in Ryanair were boosted yesterday after one of its smaller rivals — British low-cost airline easyJet — forecast profit growth of 14%, and on expectations that the Irish airline’s new “cuddly” customer-service focus is paying off.

Ryanair has put longer-haul route ambitions to the likes of Russia on hold and will focus on closer destinations like Germany to fuel short-term growth.

It’s a good illustration of how strong a run of growth Ryanair is on that the country’s main bookmaker is hawking short odds on the airline reaching profit levels of €1bn in its current financial year.

The stock market believes it is almost certain that the Government will give its clearance to IAG to formally bid for Aer Lingus in the coming weeks, a leading analyst has said.

Ferries and freight business Irish Continental Group (ICG) has reported a strong start to the year, with revenues up by over 7% for the first four months of the year, on an annualised basis.

Ryanair has beaten its own annual passenger targets for its latest financial year, which ended on March 31.

Ferries and freight business Irish Continental Group (ICG) is anticipating further strong revenue and earnings growth this year, largely thanks to lower oil prices, after reporting a strong showing for 2014.

Shares in Aer Lingus rose again yesterday following confirmation from the airline’s board that it is willing to recommend IAG’s third bid to its shareholders for approval.

European affairs minister Dara Murphy has called on his government colleagues to stand over previous commitments to protect connectivity from Irish airports in light of IAG’s potential takeover of Aer Lingus.

Aer Lingus’s strong trans-atlantic links and Heathrow slots make it an attractive proposition for IAG which had an initial offer rebuffed on Thursday.

A stronger-than-expected jump in passenger numbers for the first month of its winter schedule has prompted Ryanair to increase its full-year profit guidance for the third time this year.

Irish Continental Group has reported a 10.3% year-on-year increase in revenues for the third quarter of 2014, its most important period of the year.

Ryanair has warned against any “irrational exuberance” regarding its medium-term prospects, despite it upping its own full-year profit guidance for the second time in as many quarters, yesterday, and seeing its share price jump by over 10% on the back of a strong set of first half results.

While the unions are eyeing the Aer Lingus cash pile to plug their pensions deficit CEO Christoph Müller is looking at acquiring European rivals.

Aer Lingus sold every single seat on its transatlantic routes over the summer as The Gathering boosted the number of visitors using the airline.

The board of Aer Lingus has backed recommendations made by the Labour Court last week, aimed at resolving its pension deficit woes and avoiding industrial action.

Ryanair’s third-largest shareholder Blackrock Inc reduced its holding in the carrier to below 5% just before the news that the airline had signed a deal to secure 175 new aircraft.

Davy Stockbrokers is picking Ryanair as its transport stock of 2013 as it expects the no-frills airline to revitalise growth.

An increase in air traffic during the Christmas period has boosted all of the main European airlines, according to traffic statistics released yesterday.

Ryanair published record profits yesterday but had a rollercoaster day on the stock market, losing 5% of its value before returning to positive territory by the close of trading.

ETIHAD Airways has entered the race to acquire the Government’s 25% stake in Aer Lingus.

RYANAIR has raised its full-year guidance, as net profits increased 17% to €452 million for the six months to the end of September.

THE volcanic ash emissions from Iceland in April provided a boost to first-half profits at ferry operator Irish Continental Group (ICG) as passenger numbers jumped 12%.

AER LINGUS is on course to deliver an operating profit of €57 million for 2011 as it becomes the most restructured airline in Europe.

THE airline industry, which is losing around €150 million a day, could suffer even further this summer as consumers worry about potential disruptions.

RYANAIR will hit holidaymakers at the peak of the summer season by hiking baggage charges by a third.

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’S Michael O’Leary will be recommending a “very large” bonus for himself following the collapse of negotiations with Boeing on the purchase of new aircraft.

LONG-HAUL passenger numbers at Aer Lingus plunged by a quarter last month as ferry numbers showed an increase.

RYANAIR, which is expected to launch its 33rd European base today, believes the collapse of Austrian airline SkyEurope will open up opportunities for it to expand.

RYANAIR’S shares plunged more than 8% yesterday after the airline warned full-year profits are likely to be lower than previously forecast.

IRELAND will lose more routes and jobs as a result of increased airport charges, according to some of the country’s top analysts.

AER LINGUS hit back at Ryanair boss Michael O’Leary last night saying it will be ready for him at its upcoming AGM when he proposes massive pay cuts for the state airline’s chairman and executives.

DESPITE being relatively new to Aer Lingus, former Ryanair executive Sean Coyle is seen as a front-runner to succeed Dermot Mannion as chief executive.