Ryanair fares set for increase

Low-cost airline Ryanair's chief financial officer is expecting to see fares rise as the company' fuel costs increase next year.

Speaking to Reuters, Ryanair's Howard Millar said that higher average fares and continuing rises in passenger numbers give the company some protection from soaring energy costs.

"Our view will be that we will pretty much stay where we are. Fares will rise a bit, fuel prices will be up a bit and we should sustain some kind of reasonable margin," said Mr Millar.

He added: "We have suffered this year. Next year fuel will account for something like 38 per cent of our cost base."

However, Mr Millar was upbeat about the firm's expansion plans and passenger benifits, saying that the company was close to completing a deal to open Britain's first in-flight casino, while three new European bases are planned for this year.

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