Ryanair has been forced to admit its profits this year will be down €100 million – but while it’s struggling, others are either in full retreat or have disappeared as competition sees prices collapse.

And this is a price war Irish budget airline is winning.

"While we are disappointed at this slightly lower full year guidance, the fact that it is the direct result of lower than expected [second half of the year] air fares," Ryanair’s Michael O’Leary said.

And while profits are lower, they are still expected to come in at between €1 billion and €1.1 billion thanks to an increase in traffic.

The price war in Europe’s skies

Ryanair pointed out there are simply too many airlines competing for too few passengers at the moment.

And while that has seen it cut its fares to record lows as a result, it’s had far worse consequences for others.

"We believe this lower fare environment will continue to shake out more loss making competitors, with WOW, Flybe, and reportedly Germania for example, all currently for sale" O’Leary said.

He added that customers are our are enjoying "record lower air fares".

"The fact that we are passing on these benefits, in the form of lower air fares, to customers is good for Ryanair’s traffic growth, good for our business over the medium and long term, and good for market share as evidenced by Norwegian’s recent announcement of its plans to close bases in Rome, Gran Canaria, Tenerife and Palma, where they competed head to head with Ryanair."

And fare cuts haven’t stopped yet.

"We cannot rule out further cuts to air fares," O’Leary added – especially if Brexit or security developments impact yields between now and the end of March.

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