Ryanair's break even forecast

BUDGET airline Ryanair said it will now break even in the current financial year if oil remains at $100 a barrel in the final quarter.

The low-cost carrier, which operates a number of services from Edinburgh Airport, had previously warned of a potential £47.7 million annual loss.

But it has now revised its forecasts and said it also could return to "substantial" profits next year if crude costs continued to fall. However, Ryanair expects any savings on fuel bills this winter to be offset by fare cuts, as the group seeks to boost demand hit by a slowdown in the economy and consumer spending.

It is also yet to benefit from the declining oil price – down to below $100 this week for the first time since April – as it has fixed most of its third quarter fuel costs at $124 a barrel.