Those who are a bit aware of European cheap flights, must know about ryan air. I too was wondering about how they make the money with so cheap flights. An example of how cheap flights can be

From Eindhoven (EIN) to London Stansted (STN)
Thu, 28Aug08 Flight FR9272 Depart EIN at 09:25 and arrive STN at 09:25

PASSENGERS

1. MR ABDULLAH AL MAZED ADT 2. MRS SHANILA SHAHEEN MAZID ADT

PAYMENT DETAILS

*********0.00 EUR Total Fare

********19.98 EUR Taxes, Fees & Charges

********10.00 EUR Passenger Fee: Airport Check in

********29.98 EUR Total Paid

Note the price above is for TWO people for flying from Netherlands (Eindhoven) to UK (Stansted) and they charged 0.00Euro as fare. Final price for one person is 15e !!!
Cheaper than taxi from airport to home!!

Hmm, really interesting deal. But here are some recent news about this airlines.

Ryanair has warned it could make an annual loss of up to 60 million euros (£47.4m) due to high oil prices.

BBC news

one more:

BAA Launch Legal Action Against Ryanair.
The British Airports Authority (BAA) have started legal action against the budget airline Ryanair to force them to pay a 15% airport charge at Stansted Airport.

The dispute between Ryanair and BAA is long-standing and reports suggest that Ryanair are pushing ahead with plans to ground 15 aircraft in a protest against the prices at Stansted Airport.

News source

Well, since Ryanair is providing so cheap flights, I wish they live long!!!