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A 6% drop in fares plunged Ryanair to its first quarterly loss since 2014 and Europe’s biggest budget airline said overcapacity was likely to continue driving ticket prices lower, albeit at a slower pace. Monday’s warning of more tough trading came as the Irish company said it had secured the services of its long-standing CE Michael O’Leary for another five years. The weak Q3 performance was flagged two weeks ago when Ryanair cut its profit forecast for the year ending March 2019 for the second time in three months, and the airline reiterated on Monday it could not rule out a further downgrade, noting possible uncertainty from Brexit. The firm said recent falls in oil prices would allow loss-making rivals to survive longer, maintaining excess capacity in Europe as others like Ryanair add more and more planes. O’Leary said he saw an eventual reduction in capacity, as well as consolidation in the sector, returning over 12-18 months. Ryanair, which makes most of its profit in the summer, said fares were down 1% so far for April to September with just under a fifth of bookings in place, and pointed to a “flat to slightly down-ish” trend for the year ending March 2020 if short-haul overcapacity in Europe continues.<br/>

Ryanair CEO Michael O’Leary will step back from day-to-day management as the discount carrier moves to a group structure that puts union negotiations into the hands of subordinates after a year of labour strife. Chairman David Bonderman, in the post since 1996, will also leave next year, according to a statement Monday, following investor calls for a governance shakeup as Ryanair struggles to maintain earnings amid sliding fares. The stock fell after the Irish company said the slump in prices could worsen if a no-deal Brexit undermines demand in the UK, its biggest market. Ryanair has endured the toughest period in its 34-year history after a series of strikes forced it to recognise unions, raising cost pressures. The labour issues have still not been resolved, and investors have campaigned for an overhaul of senior management, including O’Leary and Bonderman. The boardroom changes mean Dublin-based Ryanair is seeking a new CEO for its main airline arm. O’Leary, 57, has agreed a five-year contract as group chief, with the focus on capital allocation, cost reduction, aircraft orders and takeovers.<br/>

Flybe Group has agreed to demands from its largest shareholder to call a general meeting to consider replacing Chairman Simon Laffin following the cut-price sale of the British regional airline. The U-turn on Monday by Flybe, which had rejected the call by Hosking Partners last week, boosted its shares as much as 30% in early trade before paring the gains to trade up 10.7% at 3.56 pence at 1040 GMT. Virgin Atlantic, Stobart Group and Cyrus Capital agreed to buy Flybe for an initial GBP2.2m, a far cry from its 215m pounds valuation when it joined the London Stock Exchange in 2010. Hosking, which opposes the deal, had last week also called for the appointment of industry veteran Eric Kohn as a director and a probe into the sale process, citing a decline in Flybe’s value and the board’s handling of the sale process. On Monday, Flybe said it would interview Kohn and make a recommendation on his candidacy for the board to shareholders but reiterated that a resolution for him to investigate the sale process would be ineffective as it was not allowed under the company’s Articles Of Association. Kohn would “enjoy the usual rights to information and freedoms of action enjoyed by all directors,” it said.<br/>

European civil aviation regulators have banned Turkmenistan Airlines from operating services to the country while they verify that the carrier meets safety requirements. The European Aviation Safety Agency has “suspended” flights by the carrier pending confirmation that it meets international safety standards, says the UK FCO. It has disclosed the ban in a review of public advice regarding travel to India. While Turkmenistan Airlines operates from the UK to its base at Ashgabat, it offers onward connections to the Indian cities of Delhi and Amritsar. Turkmenistan Airlines had secured third-country operator authorisation to serve the European Union, and was still listed as having this approval in a 3 January EASA update. Services from the Indian cities to Birmingham and London Heathrow, which operate through Ashgabat, will be suspended as a result of the decision.<br/>

Southwest appears to be inching ever-closer to launching its long-anticipated service to Hawaii. The carrier plans to make its first flight to the state this week, the airline confirmed Monday. But there won’t be any passengers on board. Instead, the flight from Oakland, California, to Honolulu, will be a proving flight that’s part of Southwest’s effort to secure the "ETOPS" certification it needs from the FAA to operate long overwater flights with its two-engine Boeing 737 jets. The airline's first Hawaii flight is scheduled for Tuesday, "barring any unforeseen changes," a Southwest spokesman said. "Tomorrow's validation flight is not a regular, scheduled flight and only FAA Representatives along with Southwest ETOPS Program Team Representatives and ETOPS-trained Southwest Pilots will be onboard to demonstrate our long range navigation and communication procedures and equipment," he added, noting that additional steps will be required to receive the certification. <br/>

Oman Aviation Group, a government entity in charge of investments in the country’s civil aviation sector, is seeking an adviser for debt financing of around $5b, two sources familiar with the matter said. The planned financing, spread across the next few years, would come as Oman – which is less wealthy than its oil-rich Gulf neighbours – increasingly relies on borrowing to offset a widening budget deficit caused by a slump in oil prices. The government aviation entity, which includes the country’s national carrier Oman Air, has sent a request for proposals to banks seeking an adviser on a financing programme of about 1.9b Omani rials (US$4.94b) spread across the next few years, said the sources. Oman Aviation Group did not respond to a request for comment. Responses to the request are due by mid-February, the sources said. Formed in February last year, Oman Aviation Group includes Oman Air, Oman Airports and Oman Aviation Services. A large part of the targeted financing will be used to buy aircraft for Oman Air, one of the sources said.<br/>