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Reporting results for the first half of the year, Michael O'Leary said there would be "extraordinary fare declines" over the year.
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Last month, average domestic air fares declined 16.1percentt from January 2000, according to the Air Transport Association.
The Air Transport Association, a trade group, reported recently that average domestic air fares declined 2.5percentt in March over March 2000.
The increase would begin to close a gap in which revenues from fares declined 29percentt while costs have risen 67percentt.
Continental Airlines Inc. posted a loss for the first quarter as air travel and fares declined because of the recession and the Sept. 11 terrorist attacks.
For example, traffic between Birmingham, Ala., and small cities in Europe nearly doubled between 1995 and 1999 and fares declined 34percentt.
The low-cost carrier Ryanair Holdings said full-year earnings would be at the low end of a forecast range as fares declined.
Average domestic air fares declined 9.1percentt and average international air fares were down 1.3percentt in July, compared with the month a year earlier, according to the Air Transport Association, the airline industry trade group.
Like the rest of the industry, it's hurting because of lower fares, declining passenger yields and high fuel costs.
And British Airways' shares soared on Friday, even after it swung to a surprising loss in its first half as record high oil prices ate into its revenues and demand for its fares declined.
Asked how she expected to fare, Whaley declined to offer a specific goal.
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