RYANAIR BOSS MICHAEL O’Leary has warned that flight prices are likely to increase as passengers rush to holiday in Europe next summer.

O’Leary said that huge demand for holidays would coincide with fewer flights, meaning a price rise for flights as well as for hotels.

In an interview with the Sunday Times, he said: “I think there will be a dramatic recovery in holiday tourism within Europe next year. And the reason why I think prices will be dramatically higher is that there’s less capacity.

“Take out Thomas Cook (six million seats), Flybe (eight million seats), Norwegian (nearly 24 million seats) – Alitalia’s reducing its fleet by 40%. There is going to be about 20% less short-haul capacity in Europe in 2022 with a dramatic recovery in demand.”

Ryanair prices will be cut this winter, to “grab market share everywhere”.

O’Leary said earlier this month that Ryanair is currently flying 60 per cent of its normal passenger numbers and will increase that to 67% during the peak summer holiday season in August as it tries to make back losses of £233 million from springtime.