Ryanair said it will lower fares in 2016 as the airline is expected to save around €430 million on fuel costs.
Speaking at the annual Dublin Chamber of Commerce lunch, Ryanair boss Michael O'Leary said the carrier will lower the average cost of a flight by over 10 per cent - from €47 to €42.
According to the Irish Independent, O'Leary said the company will benefit from fuel hedging - buying in advance - and has saved €430 million due to significant drops in the market.
"We are going to use that to lower our prices. Those kind of oil savings will enable us to lower our fares by about 10 per cent across the board next year. I expect that €47 average fare to be €42 and if we pass on those savings we will have even fewer competitors at the end of the cycle," he added.
Ryanair previously lost out on its hedging policy by purchasing 90 per cent of its fuel at €100 a barrel when costs began to slump. For its next financial year, however, it will purchase fuel at €68 a barrel.
