British Airways has confirmed plans to launch a business-class service next year, flying from London's City airport to New York. It will go head to head with Silverjet in trying to win corporate custom.

Transport group Arriva today said additional services and greater passenger use had shielded its bus operation from rising fuel costs.

Transport group Stagecoach said it planned to spend £71 million on new buses to attract more passengers.

British Airways today said it was no longer involved in plans for a takeover of Spain's Iberia.

Low-cost airline Easyjet has broken its annual pre-tax profit record after carrying 37.2 million passengers in the past year. Earnings were up 56% to £201.9 million.

While its customers may not believe it, for FirstGroup shareholders it was better to travel than arrive.

Low-cost airline Ryanair increased its profit forecast today, despite the impact of a rising fuel bill.

British Airways today cut its revenue forecasts following the dollar weakness. Management warned it may miss its 4% sale-growth target by up to 1% and shares fell in early trading.

Low-cost airline EasyJet has snapped up rival operator GB Airways after it was rejected by British Airways. The deal strengthens EasyJet's position at Gatwick Airport as it secures more take-off and landing slots.

Low-cost airline easyJet today said annual profits would be nearly 50% higher after strong passenger growth last month. The operator carried 14.2% more people in September than last year.