Price cuts predicted for budget airlines

Customers could see ticket price slashes if airline's face financial difficulties in the current economic climate, says an expert.

The Air Transport Users Council (ATUC) has said that problems like the current ones Ryanair is experiencing could pay for passengers.

James Freemantle, the industry affairs manager at ATUC, said: "It would appear that due to the state of the economy as a whole, the market is becoming very saturated.

"If they slash fares then consumers are going to have some real bargains for the next few weeks or so."

He said that overall the airline industry is "pretty robust" but to create demand the airlines may cut some prices, saying "they have to fill up the seats somehow".

Ryanair warned this week that their profits could halve next year, blaming high oil costs, increasing airport charges and a dip in demand from customers for budget flights.

Mr Freemantle said that there are only so many routes from the UK and budget airlines have covered them, meaning there is little room to expand.

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