But Ryanair expects savings this winter to be offset by fare cuts as it seeks to boost demand. It is also yet to benefit from the oil price - down to below $100 this week for the first time since April - as it has fixed most of its third-quarter fuel costs at $124 a barrel. Chief executive Michael O'Leary said: "While Ryanair's refusal to impose fuel surcharges will mean that our profitability declines steeply in the current year, our cost reduction programme and lower oil prices (if they persist at under $100 a barrel) should lead to a return to substantial profitability in the year ended March 2010."