Ryanair profit hits 4-year low as 'fare wars' bite

Ryanair reported its weakest annual profit in 4 years Monday and said earnings could fall further as European airlines wage what CE Michael O'Leary described as "attritional fare wars." After initially falling 6%, the shares made up some ground after O'Leary argued that lower fares and profitability for a couple of years were a price worth paying to boost market share and hasten consolidation. O'Leary said the lower fares and profit were cyclical and that 4 or 5 European airlines were likely to emerge as the winners in the sector. "Our strategy would be to keep adding capacity as quickly as we can in all the markets where we can," said O'Leary. "Will it be painful for a year or two, yes it will. But will it shake out more of the competition, yes it will." <br/>