Ryanair fare rises boost annual profits - Telegraph.co.uk

Although fares will likely go up this year, Mr O'Leary hinted rises would be more modest as households struggle beneath the pressure of austerity and weak, or no, wage growth.

"I can't foresee we will have three years in a row of double-digit fare increases," Mr O'Leary said. "It can't continue – these kind of fare increases can't continue."

Despite the warning over this year's full-year profits, Ryanair expects it will be a beneficiary of the austerity measures across Europe as more unprofitable airlines go to the wall and travellers trade down from the flag carriers.

Ryanair, which carried 76m passengers last year, yesterday announced its second special dividend in two years, which will see about €483m returned to investors.

Mr O'Leary, who is well known for his colourful outbursts, used the results announcement to warn that Ireland would likely need another EU bail-out.

He said: "I don't think we have tackled the fiscal deficits in Ireland. After four years of austerity government, Ireland is still running with a €15bn annual deficit which should have been closed by now. I am all in favour of the German Government running the Irish economy. I think they will be a damn sight better at it than any of the politicians the Paddys have elected in the last 20 to 30 years."