Ryanair has predicted surging demand will send the cost of air travel higher days after rival low cost carrier Flybe collapsed.

Europe’s largest discount airline said it was “confident” about the months ahead. 

Flybe collapsed into administration for the second time in two years over the weekend, leaving thousands of passengers stranded and 277 staff out of work.

Meanwhile, Ryanair raised its profit outlook for the year to a range of €1.325bn (£1.16bn) to €1.425bn (£1.25bn) as it boosted sales by 57pc to €2.31bn (£2bn) in the final three months of last year. Profits for the period were €211m (£185m) compared to a €96m (£84.2m).

Chief financial officer Neil Sorahan said: "We will deliver record profits in the current financial year and we would expect to continue to grow profitably into next year and beyond. 

"Based on current booking profiles, we think that fares will rise into Easter and the summer."

Passenger numbers should reach 168m this fiscal year, the airline said, and rise to 225m by 2026.

Read the latest updates below.