Ryanair vows to cut average fares

The Dublin-based carrier believes there are “many opportunities” open to it, such as competing more vigorously at primary airports and in attracting business traffic which tends to travel more during the winter period.

Its “ambitious” new forecasts for the six months to March 31 include the plan to fly an additional 2.2 million passengers compared with its previous estimate - leading to a total rise of 16 per cent or 5.3 million customers on a year earlier.

It now expects annual profits of up to 770 million euros (£602m), a rise of 18 per cent on its previous guidance. Profits for the summer half-year were 32 per cent higher at 795 million euros (£621.6m), the company added.

The airline’s recent drive to improve its image is showing signs of paying off, having softened its stance on baggage charges and booking conditions and introduced allocated seating and a new business service.

Ryanair said average fares will fall by between three per cent and five per cent in the current quarter before an aggressive promotional drive will cut fares by between six per cent and 10 per cent in the new year.

As a result, the airline expects to carry 89 million customers in the year to March 31, a rise of nine per cent on a year earlier and the second such upgrade since September. Average fares will be up by one per cent to 47 euros (£36.76) across the year as a result of higher prices over the Easter period.