I still believe Ryanair's model can sustain this without the need to be drastically changed. Ryanair have and still are moving towards becoming a medium that sells add ons - this is where their future business lies.
One example, the more people ITV can get tunned into Corination Street the more the advertising space is worth. The people onboard ryanair flights are the equivilent of this. The more passengers they carry, the more the product on board is worth. The advertising they have on their seat backs, lockers, in their magazine. The more check-in fees, bag fees, excess fees, on board sales through buy as you fly and the trolley services. They are a flying shop - which begins from the moment you click on their website right through to the moment you arrive in the final city (dont forget the cut they get from bus transfers from remote airports). They are strengthening this brand, diversifying quickly into new markets in order to add value to "RYANAIR" - the company.
I understand, some thin routes will have to go - but this is not a life or death matter for Ryanair. Fuel is a major issue for them, but it wont cause the business too much damage - just expect an increase in charges else where on the extras - this is where the revenue will be generated mainly from in years to come. MOL has already stated he wants all flights to be free (thats OTT we all know).
Now this isn't a Ryanair rant, I'm not a Ryanair fanatic - but I believe in their business model, it has and will continue to prove successful. I do appreciate everyones comments, and it would be stupid to say that this isn't a major headache for MOL and the management of FR. But I'm sure somewhere along the line Ryanair will use this to their advantage - why, they've already started, with their mass publicity stunt on freezing wages - now isn't everyone becoming more aware of the Ryanair brand, just through these types of stunts.