Ryanair chief executive Mr Michael O'Leary has said the airline's share price will not recover for one or two years or for as long as the fares war continues across Europe, writes Siobhán Creaton, Finance Correspondent

Ryanair's shares plunged 28 per cent in January, wiping more than €1.3 billion off the airline's market capitalisation, when it issued a surprise profit warning in January, which it blamed on aggressive price cutting by rivals.

The shares tumbled from €6.75 to €4.86 on January 28th and have remained at or slightly above that level since then. Yesterday, Ryanair shares closed in Dublin at €5.05, up 8 cents.

Mr O'Leary, who owns five per cent of the airline's shares and is Ryanair's biggest shareholder, said he "wasn't a bit bothered" by its weak share price. "I couldn't be happier about that outcome," he said yesterday.

He said the rest of this year would continue to be difficult, with yield per passenger expected to fall by 5-20 per cent. However, the airline would still make profits of more than €200 million and profit margins of 20 per cent.

"We will still be exactly where we want to be. This is a good market from our point of view," he said, adding that Ryanair was robust enough to weather a fares war even if it continued over the next two to three years.

Mr O'Leary was speaking at a Dublin press conference he called to announce that the airline would appeal the aviation regulator's recent decision on airport charges.

Ryanair claims the regulator has failed to control the inefficiency and excessive costs levied by Aer Rianta at Dublin Airport.

He called on the regulator, Mr Bill Prasifka, to resign.

"This regulator has failed the Irish aviation industry. He should resign or be replaced. Better still, the Government and the Minister for Transport should proceed with their plans to break up the airport monopoly and introduce competition in the form of a second terminal, which will do away with this ineffective and inefficient regulator."

Mr O'Leary said Ryanair would open new routes from the Republic once a new terminal was built at Dublin Airport.

He first mooted this almost 10 years ago and - while the current Minister for Transport, Mr Brennan, signalled there would be some progress by the end of last year - still nothing had happened.

He said he would continue to pester the "dithering" Government on the issue.

Ryanair would immediately open new routes from Shannon airport if the new terminal was sanctioned, he said.