Millions of fliers could see cheaper tickets this summer as Ryanair has announced fare cuts which could spark a price war.

The Dublin-based carrier said it plans to slash fares by an average of 7% this year as the industry struggles with overcapacity and weakened demand following the terror attacks in Brussels and Paris.

Experts are now forecasting that other carriers could follow suit.

Robin Byde at Cantor Fitzgerald said: "Ryanair is a major player in many of the markets and airports it flies to. If it cuts prices, other airlines will have to respond to that."

Earlier this month, rival easyJet also said it will look at price cuts, saying it "will be able to offer its customers even better value fares this summer".

But Ryanair chief executive Michael O'Leary vowed on Monday that the Irish airline will emerge victorious in any price war.

He said: "If other airlines want to compete with us on price, then we will lower our prices again. If there is a fare war in Europe, then Ryanair will be the winner."