Low cost carrier Ryanair plans to ground up to 80 aircraft this month, despite a leap in profits.
The airline blamed high oil prices for the measure, which will mean a drop in traffic of at least 4% in the second half of this financial year.
Michael O'Leary, the budget carrier's CEO, said: “While H1 yields were slightly better than forecast, our outlook remains cautious.”
Ryanair reported a half-year profit after tax of €544 million, up from €452 million last year.
The figure represents a 20% rise on the April to September period in 2010.
Traffic over the six months grew by 12%, from 40.1 million passengers to 44.7 million.
Ryanair responded to a 37% rise in fuel costs with a 12% hike in average fares and a 15% rise in ancillary sales.
O'Leary said that even though capacity was due to be cut dramatically, there was plenty of opportunity for growth in Europe.
“The recession and higher oil prices continues to force competitors to consolidate, and cut capacity and routes,” he said, “which creates further growth opportunities for Ryanair as European airports compete aggressively to win our route and traffic growth.
Ryanair will open new bases in Wroclaw, Poland and Baden Baden, Germany in 2012, with plans for a base at Warsaw, Poland, under way.