easyJet founder Sir Stelios Haji-Ioannou has accepted undisclosed libel damages over advertisements by Ryanair that accused him of lying. The Irish carrier ran adverts depicting Stelios as Pinocchio, suggesting he was lying about easyJet’s punctuality.

Low-cost airline Ryanair has lost the latest round in its ongoing battle to acquire rival Irish carrier Aer Lingus. Despite the setback, Ryanair was able to claim a partial victory, with the EU General Court upholding a Commission ruling stating the airline will not be forced to divest its 29.8 shareholding in Aer Lingus.

Ryanair is cutting its UK capacity by 16 percent next winter, equating to 2 million fewer passengers, as it shifts operations to its European bases to take advantage of cheaper air passenger duty. Stansted is the hardest hit with 135 fewer flights per week.

Ryanair has defied the aviation slump by posting a 280 percent increase in pre-tax profits to €350m for the full financial year. The budget carrier also said it will pay its first ever dividend, a one-off payment of €500m, with Michael O’Leary set for a €20m windfall.

Ryanair has made a dramatic climb down from an earlier decision to refuse to pay the hotel and food bills of passengers stranded by the ash cloud. Instead the budget carrier has bowed to passenger outrage following its flouting of strict EU regulation that requires coverage of costs.

Ryanair has confirmed it is to cancel all north European departures until Monday. The Irish carrier cited safety concerns for the decision, as a cloud of volcanic dust from Iceland continues to spread across the continent.