Ryanair to cut up to 40 jobs to offset fuel costs

DUBLIN (Reuters) - Ryanair (RYA.I) said it would close its Dublin telesales operation, affecting up to 40 jobs, because phone bookings have been eclipsed by Internet reservations, and to help offset high fuel costs.

Ryanair (RYA.L), Europe's largest low-cost airline, said on Friday phone bookings now accounted for less than 1 percent of sales as almost everyone booked online, but it would still maintain its cheaper call centres in Romania and Germany.

"These kind of cost savings must be made if Ryanair is to remain Europe's lowest cost airline in these difficult recessionary markets," Chief Executive Michael O'Leary said in a statement.

O'Leary said on Wednesday that he expected Ryanair's profits to halve this year and he would freeze pay for top executives as the airline faces high fuel costs.

(Reporting by Andras Gergely; Editing by Mike Elliott)