Ryanair, Europe's biggest low-cost airline, expects a higher fuel bill this year but higher average fares and a 20 per cent rise in passengers would provide some relief from soaring oil prices, a senior executive said.

He also said the Dublin-based company would continue expanding aggressively, with up to three new bases planned in Europe this year and a deal was close to introducing in-flight gambling.

Chief Financial Officer Howard Millar said the airline, whose protection from soaring oil prices runs out this week, faced another challenging year with fuel set to account for 38 per cent of total costs.

"Our view will be that we will pretty much stay where we are. Fares will rise a bit, fuel prices will be up a bit and we should sustain some kind of reasonable margin," Mr Millar told a Reuters news forum in Dublin.

"We have suffered this year. Next year fuel will acount for something like 38 per cent of our cost base."

Mr Millar said Ryanair would not resume hedging fuel costs until the oil price fell well below $60 per barrel. He said the airline expected a similar pattern to last year when it entered the busy summer season unhedged and relying on higher average fares to offset the damage.