Ryanair fares to rise 10% after profits dive over ash cloud disruption

RYANAIR expects fares to rise by up to 10% this year, as first quarter profits fall 24% due to the volcanic ash crisis.

The airline said it is launching a court case in the next couple of weeks in Ireland challenging regulations where airlines have to pay compensation to passengers due to an act of God disaster. The airline said it will argue travel insurance companies paid nothing as a result of the volcanic ash crisis but the airlines were made the insurers of last resort.

Ryanair said it had already paid out on more than a million ticket refunds. It still has up to 120,000 claims for food and accommodation to deal with, it said.