Ryanair says to cut flights but guidance unchanged

DUBLIN (Reuters) - Irish airline Ryanair said on Tuesday it would cut flights at its Dublin base due to high fuel prices and airport costs, but it was not changing its profit guidance for this year.

Ryanair, Europe's biggest budget airline, said it would cut weekly flights at Dublin by 12 percent this winter and it would also cut some at Stansted in the UK, which it will detail later this week.

All in all, it expects to ground just over 10 percent of its fleet for the winter, Chief Executive Michael O'Leary said, adding that he expects Ryanair to carry about 58 million passengers in the year, 1 million fewer than an earlier forecast.

"No change in full-year guidance at the moment," O'Leary told a news conference when asked about his profit outlook.

"This year we are going to make very little or no money if oil stays around $130-$140 a barrel," O'Leary said.

Ryanair said earlier this year it hoped to break even in the current year through March 2009 based on average fares rising some 5 percent and an average oil price of $130 a barrel.

"Compared to winter 2007, when Ryanair operated 22 aircraft, and over 1,350 weekly flights, Ryanair's schedule at Dublin this winter will be reduced to 18 based aircraft and less than 1,200 weekly flights," Ryanair said in a statement.

(Reporting by Andras Gergely)