Ryanair freezes top executives pay to ease oil pain

By Darren Ennis

BRUSSELS (Reuters) - Ryanair Chief Executive Michael O'Leary will freeze the pay of top executives at Europe's biggest low-cost carrier as he seeks to counteract high fuel costs that could lead to a halving in profits this year.

"Our guidance remains the same from our last," O'Leary told a news conference in Brussels on Wednesday. "We will update this in June at our results, but I expect a 50 percent drop in profits in the next 12 months."

Dublin-based Ryanair (RYA.I) warned in February that high oil prices, a faltering UK economy and weak sterling meant net profit would rise by 6 percent at best this year and that, under its worst-case scenario, it could fall as much as 50 percent.

"The next 12 months will not be pretty for net profit and will not be pretty for shareholders," O'Leary later told Reuters. "We will have a better feel for it in June. I don't have that feel at the moment."

A spokeswoman for Ryanair said the company's range of earnings guidance was unchanged from the range given in February.

Despite continued concerns over fuel costs, O'Leary said he did not foresee any direct increases in Ryanair (RYA.L) fares, although some charges would rise.

"I think our fares will be flat and that will be a good result I think," O'Leary said.

Ryanair shares, which have fallen 15 percent since February's guidance and have almost halved in value over the last 12 months, closed 2 percent lower at 2.93 euros in Dublin versus a 1.6 percent fall for the broader Irish market .ISEQ.