Ryanair has vowed not to raise prices

Rising oil costs could cost airline Ryanair an extra 40m euros (�27m; $49m) this year, the company has said.

But the carrier vowed not to introduce fuel surcharges for customers to cover the rising costs.

Chief executive Michael O'Leary said that the firm was currently hedged - or insured against price rises - until October this year.

But once that expires, Ryanair could face an extra 40m euros of costs if crude prices hold at about $47 a barrel

Fuel takes up 14% of Ryanair's revenues, which could rise to 25% if fuel prices doubled, Mr O'Leary said.

Fuel prices to fall?

The Dublin-based airline, which has been slashing fares to fill its seats amid heavy competition in the no-frills sector, is currently hedged at $26 a barrel until the end of October.

Fuel hedging allows airlines to fix fuel costs months in advance.

Mr O'Leary said he was confident that fuel prices would drop below current record highs in the next year, adding that the firm had no plans to resume hedging prices until oil neared $30 a barrel.

On Wednesday, BMI, Air France and KLM all raised their fuel surcharges, following similar moves by British Airways and Virgin Atlantic earlier this month.