Paris

RYANAIR, Europe's largest budget airline, reported a record full-year profit on Tuesday but warned of an intensifying fare war across Europe in the coming months as lower oil prices help to reduce operating costs for many of its full-service rivals.

The news came as the Irish media reported that Ireland's coalition government was poised to agree to sell its 25 per cent stake in the country's flagship carrier, Aer Lingus, to the parent company of British Airways.