Ryanair airline has announced that it will not pass on the rising costs of fuel to its passengers.
Chief executive Michael O’Leary said that Ryanair flights will not cost more due to the extra burden of the rising price of oil "even if means that our profits will fall in the short term".
The promise will be welcomed by passengers looking for cheap flights on Ryanair routes though Mr O’Leary did say that Ryanair airline will ground 20 aircraft, or ten per cent of its fleet this winter as a cost-cutting measure.
Oil is currently trading at around $127 a barrel and Mr O’Leary believes that this will severely impact the operations of many low-fares airlines, though insisted Ryanair airline was well placed to weather the storm.
"The airlines who will survive this period of higher oil prices and industry downturn are those with new cheaper fuel efficient aircraft, lower costs, substantial cash balances, low net debt and management who are ready to exploit downturns to drive costs lower and increase efficiency," he said.
"No airline is better placed in Europe than Ryanair to trade through this downturn. We will therefore continue to grow, by lowering fares, taking market share from competitors, and expanding in markets where competitors either withdraw capacity or go bust."