From the BBC http://news.bbc.co.uk/1/hi/business/4221563.stm Ryanair, Europe's biggest low-cost airline, has reported a 26% drop in=20 quarterly profit after it lowered fares and the price of fuel soared. Net profit was 35m euros ($45.5m; =A324m) in the three months ending 31=20 December, from 47.5m euros a year earlier. Despite the fall, the earnings were better than expected and Ryanair was=20 bullish about its prospects. The Dublin-based carrier forecast that more of its competitors would go=20 bust, helping secure future profit growth. Shrinking market? "As predicted, casualties continue in the European industry," said=20 Ryanair's chief executive Michael O'Leary, citing firms including Volare,=20 VBird and Air Polonia. He added that companies including Italy's Alitalia and Scandinavia's SAS=20 have posted record losses, while others such as Hapag Lloyd Express,=20 MyTravel Lite and Basiq Air "have announced significant reversals of= capacity". "This is not a temporary phenomenon resulting from high oil prices, but a=20 permanent market shift towards low cost air travel," Mr O'Leary said. Fuel factor Ryanair's passenger volumes during the October to December period grew by=20 13% to 6.9 million. Total sales climbed 15% to 294.4m euros. Average revenues per passenger were unchanged in the third quarter compared= =20 with the same period a year earlier. Crude prices, however, hit record levels last year, boosting the cost of=20 jet fuel. "Fuel prices remain high and will continue to impact our future guidance,"= =20 said Mr O'Leary. The company said that it has negotiated new fuel contracts and covered=20 almost all of its exposure to world petroleum prices. Trials The airline was upbeat about its prospects for the full-year. "We think we've had a very strong performance in the third-quarter and will= =20 be upgrading our full-year guidance to 246 million euros," said chief=20 financial officer Howard Millar. However, not so successful has been Ryanair's trial of a new onboard=20 entertainment service offering videos and music for =A35 a flight. The carrier said it may abandon plans to roll out the system to its entire= =20 fleet after a "disappointing" trial. It blamed a lack of availability of non-English language content programmes. Ryanair had hoped its passengers would pay =A35 to watch Hollywood films,=20 chart videos, cartoons and comedy classics as they flew.