Irish budget airline Ryanair said on Feb. 12 that it will cut 200 jobs due to an expected 20 percent drop in passengers through Dublin in its current financial year, heaping more gloom on the local labour market.

Earlier, Swiss aircraft maintenance group SR Technics said it planned to close its Dublin airport operation, putting 1,135 jobs on the line, due to tough conditions and a loss of contracts.

The impending shutdown and Ryanair's cutbacks mark another black day for Ireland's labour market which has already seen a record jump in the numbers claiming unemployment benefit.

The estimated unemployment rate rose to 9.2 percent in January and some economists have said it could climb close to 12 percent by the end of the year.

Ryanair said its job cuts, among pilots, cabin crew and engineers, reflect an expected 20 percent drop in Dublin traffic to 8.7 million passengers in its financial year which runs to the end of March 2010.

Chief Executive Michael O'Leary said the airline would cut its Dublin-based aircraft by 20 percent and blamed rising airport charges for putting further pressure on budget-conscious travellers.

"The combination of the Dublin Airport Authority's high costs and awful facilities has already created a traffic collapse at Dublin airport this winter," O'Leary said.

Shares in Ryanair were down 1.3 percent at EUR3.17 in a general market 1.2 percent weaker.