Ryanair is "highly unlikely" to make a third bid for rival Aer Lingus but may invest further in the airline, chief executive Michael O'Leary said today.
Speaking at Ryanair's AGM in Dublin, Mr O'Leary said he expected Aer Lingus to seek further funding.
"I do think Aer Lingus will need a major reorganisation ... and they will come back to the existing shareholders which would be the Government, the trade unions and Ryanair presumably to raise some more money," he said. "We'd be happy to invest more money in Aer Lingus."
Mr O'Leary said Ryanair had kept its forecast for full-year net profit towards the bottom of a €200 million to €300 million range. He predicted profit would double this year over last year's figure, boosted by lower oil prices.
The company has hedged 90 per cent of fourth-quarter fuel requirements at $62 a barrel.
Mr O'Leary told shareholders he sees average fares falling about 20 per cent in the financial year. However, the airline is expecting to carry fewer passengers this year as a result of cuts to winter schedules. Mr O'Leary said he was expecting 66 million passengers a year, down from 67 million.
Mr O'Leary also ruled out a quick entry into the long-haul market, saying that any possible longhaul plan is at least three to four years away.
He also said he would continue to look at the possibility of one-off dividends and further share buybacks.
Additional reporting - Reuters, Bloomberg