Airline will not pass on fuel rise

Ryanair has promised not to raise fares in the near future despite increased pressure on overheads in the wake of a spike in …

Ryanair has promised not to raise fares in the near future despite increased pressure on overheads in the wake of a spike in jet fuel prices.

Rising oil costs would not be passed on to the customer, pledged chief executive Mr Michael O'Leary.

"We're going to launch a campaign - no fuel surcharges on Ryanair, no price rises because of fuel," said Mr O'Leary, after unveiling a new maintenance facility in Glasgow.

"We'll guarantee we will hold to the same prices to the end of the year, regardless of what happens to fuel prices," he said.

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Rising fuel prices were not having a significant impact on the airline's costs and are unlikely to in the near future, barring unforeseen circumstances, said Mr O'Leary.

With unrest in the Middle East and concerns about some oil stocks sending prices soaring, international airlines are expected to pay $8 billion (€6.7 billion) extra for fuel this year.

One carrier, American Airlines, has already raised ticket prices as a direct result.

Last week it announced a €2 fare rise.

Meanwhile, Mr O'Leary used the unveiling of Ryanair's £10 million (€15 million) plane maintenance centre to castigate the local council for its "ludicrous" rates demand.

Warning that not a penny extra would be sunk into the Prestwick facility, expected to employ 200 over the next five years until the dispute was resolved, Mr O'Leary accused Ayrshire Council of "highjacking" the investment with a rates demand of £111,000.

Other UK regions had offered the airline a 10-year "rate holiday", according to Mr O'Leary.

He said: "Unfortunately this £10 million investment by Ryanair, creating up to 200 jobs, is already being highjacked by the Longshanks of Ayrshire Council, who have come up with a ludicrous rate demand of £111,000 - unlike other UK regions which were offering rate holidays for 10 years.

Ryanair will halt all further job creation at this facility until this highway robbery is reversed."