Dublin-based airline, Ryanair has warned that higher fuel costs and turmoil in the eurozone could shave around 20 per cent off the airline's annual profits this year.
According to chief executive, Michael O'Leary, the coming winter with a depressed economy that would not support the double-digit rises in fares making it difficult for the airline to maintain current margins.
The warning served to brush the shine off record annual profits of 503 million in the year to 31 March from the carrier. The company warned that prospects for the new financial year were tough with lower profits of between 400 million and 440 million pencilled in.
Ryanair's share price, which scaled a four-year high of 4.49 at the start of April, has suffered with escalating crisis in the eurozone.
Shares were down nearly 6 per cent in early morning trading today.
According O'Leary, the airline's fuel bill would increase by 320 million.