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Ryanair is in talks with EADS unit Airbus and Boeing Co. to buy up to 400 aircraft to secure mid-term growth following its recent earnings slump, chief executive Michael O'Leary has told Sueddeutsche Zeitungin an interview.

Planes are “about half as expensive as they were a few years ago”, he said, because of the currently weak US dollar.

Europe's largest low-cost carrier last month said first-quarter net profit slumped 85 per cent as its fuel costs soared, and warned it may post a full-year loss of up to €60 million if oil prices remain high.

“But the price will fall below $100 again because demand is declining,” Mr O'Leary told Sueddeutsche. “There is no oil shortage.”

However, if prices remain high, only between three and five European airlines will stay afloat in the longer term, among them “Ryanair and maybe Easyjet”, he said.

Airlines around the world have been merging with peers and buying shares in smaller rivals to boost their income in the face of surging fuel prices.

Oil prices have risen 63 per cent in the past 12 months and last month reached record levels above $145 per barrel.