RYANAIR would launch another bid for Irish carrier Aer Lingus – but only on the invitation of the Irish government.

Michael Cawley, deputy chief executive at the Dublin-based budget airline, admitted the possibility of a third bid for Aer Lingus after revealing annual results that showed Ryanair had slipped into the red.

He said: “We are the largest shareholder, we believe we have a recipe and a formula which can rectify the situation for them and we remain interested but certainly not enthusiastic to make another offer."

A £191m writedown on the value of Ryanair’s plummeting shares in Aer Lingus, together with a 59% hike in its fuel bill, contributed to a £155.6m pre-tax loss for the year to March 31.

That compares with a profit of £378.3m the previous year but flamboyant chief executive Michael O’Leary dismissed the Aer Lingus provision and pointed to an adjusted profit of £90.5m which, while ahead of forecasts, was still 78% lower than the previous year.

Revenues rose 8% to £2.34bn, passenger levels grew by 15% to 58.5m and Mr O’Leary pledged to more than double profits for the current financial year.

That will be helped by fuel hedging, when the airline buys fuel in advance at fixed prices, which will save Ryanair an estimated £387m.

Revenues from inflight services such as charging for mobile phone calls are also running ahead of target and last year grew by 23% to £515m.

Further initiatives to cut costs and maximise earnings opportunities include plans to axe airport check-in desks to encourage passengers to check-in online instead.

With £1.98bn in cash reserves the airline, which flies 37 routes from Liverpool John Lennon airport, has taken advantage of the low euro/dollar rate and interest rates and is boosting its fleet with 45 new planes by September next year to service the anticipated extra capacity as price-conscious passengers seek better deals.

Mr O’Leary said a combination of deep recession, weaker sterling and their own capacity for growth will see fares fall between 15% and 20% this year.

“The recession and declining consumer confidence is proving to be good for Ryanair’s growth.”