Ryanair upbeat as profits fall

Profits at budget airline Ryanair have fallen 47% but the airline believes that earnings will bounce back as oil prices fall.

Net profit in the six months to the end of September stood at 214.6m euros (£169m; $277m) compared with 407.6m euros a year earlier, the firm said.

Chief executive Michael O'Leary said that if oil prices remain at $80 a barrel then profits would recover.

Airlines worldwide have struggled as fuel costs soared earlier this year.

Oil prices peaked at more than $140 a barrel in July this year but have since fallen to less than $70.

"We have a significant cost advantage over our competitors many of whom have hedged fuel next year at significantly higher levels than current market prices," Mr O'Leary said.

"This will force competitors to further increase airfares and widen the price gap between them and Ryanair's lowest fares," he added.

The airline has also said it plans to begin offering flights to the US for £8, by buying planes from struggling rivals.