Ryanair predicts return to profitability

Ryanair has warned that it expects more airline bankruptcies in the coming weeks following the recent closures of Zoom, Futura, XL Airways and the bankruptcy of Alitalia.

Chief executive Michael O'Leary has told the company's AGM that that many loss making European airlines will cease trading this winter because of unsustainable losses and insufficient cash reserves.

Provided oil remained at $100 per barrel the company expected to end its financial year in a breakeven position he said.

'While Ryanair's refusal to impose fuel surcharges will mean that our profitability declines steeply in the current fiscal year, our cost reduction programme and significantly lower oil prices should lead to a return to substantial profitability in the next fiscal year' he said.

Michael O'Leary also criticised Aer Lingus for not lowering its fares, fuel surcharges or costs and called on the government to break up the Dublin Airport Authority and dismiss the Aviation Regulator.