Ryanair to spark airline fare war

Holidaymakers are set to benefit from a fresh price war among European airlines this summer, with Ryanair about to slash costs and competitors likely to follow suit.

After reporting a 43% rise in annual profit to €1.24bn, Ryanair yesterday said it expects its average fares to fall by around 7% this year and said it is fully ready for the competition.

“If there is a fare war in Europe, then Ryanair will be the winner,” the airline’s chief executive Michael O’Leary said, adding that if other airlines want to compete on price, then Ryanair will simply lower its fares even further, even if that eats into its earnings.