Ryanair CEO Michael O'Leary has told the company's AGM that he thinks it is 'highly unlikely' he will make another bid for Aer Lingus.
Mr O'Leary added, however, that Ryanair would be prepared to invest more money in its rival.
'I do think Aer Lingus will need a major reorganisation ... and they will come back to the existing shareholders which would be the government, the trade unions and Ryanair presumably to raise some more money,' O'Leary said.
'We'd be happy to invest more money in Aer Lingus,' he added.
The development came after the company's results showed passenger numbers are up but profits are down at the budget airline.
The company made a net profit of €105m in its past year - a fall of 78% compared to last year's figure of €481m.
There was a 15% increase in the number of passengers carried to 59m, but the carrier's fuel bill rose 59% to €1.57bn, accounting for 45% of costs.
Ryanair made a net loss after tax of €169m when a write-down of its investment in Aer Lingus is included in its full-year results to March 2009.
The budget carrier has written down €247m on the value of its 29% stake in Aer Lingus.
The company's shareholders were told the firm is considering breaking its policy on hoarding cash by paying a once-off dividend.
However, a lack of affordable airliners means its plans to launch a long-haul airline will not happen for at least three or four years.
