Ryanair is to open its fourth Portuguese base in the Azores from April.
The airline will base one plane there and launch three new routes to London Stansted, Lisbon and Porto.
Ryanair is also in talks with the government of the Azores about possible services to Terceira and additional international flights to the islands.
Shares in Ryanair jumped yesterday after it raised its profit forecast for the second time in a month after passenger numbers jumped 22% in November.