Updated 08.51

Ryanair says its annual profits this year will drop sharply.

The airline says, despite making a profit of €602 million in the key summer months, its losses over the winter will be greater than expected.

It now expects a profit of about €510 million for the year to the end of March next.

Ryanair says it is being hurt by increased price competition, softer economic conditions in Europe and by currency movements.

The low-cost carrier has also announced plans to introduce allocated seating on all flights, from next February. Ryanair says the move will help families or other groups to sit together. The airline says they have made the move in response to 'enormous' demand from customers.

Deputy Chief Executive of Ryanair, Howard Millard, spoke to Newstalk's Business Editor Ian Guider on Breakfast earlier: