It comes after Ryanair reported a 17% drop in ticket prices to 33 euro per passengers in the three months to the end of December, and said it expects prices to fall further into 2018.
"Our prices are falling faster than we initially planned, but this is good news for customers," Ryanair said.
The airline blamed downward price pressure on Brexit uncertainty, a weaker pound, and the drop in demand for destinations like Turkey, Egypt and North Africa, all of which have made headlines for terrorist attacks in recent years.
Airlines are now pulling back from those regions to focus on the Western Mediterranean, Spain and Portugal, where competition is getting fierce.
Analysts are now forecasting other carriers could follow suit and slash prices.
"Both have signalled weaker yields, and are, in part, driving this discounting."
Numis Securities analyst Wyn Ellis said the relative rate of capacity growth - or the number of seats and flights on offer - is "significantly higher" than underlying demand growth.
Demand across Europe is growing between 4% to 5%, while capacity growth - most of which is concentrated in the Western Mediterranean - is rising by 6% to 7%.
Meanwhile, cheap fuel prices are enabling further price cuts.
"That's the overall issue and it's affecting all airlines in European short haul. Too much capacity chasing too little demand in a relatively low cost fuel environment," Mr Ellis said.
Consumers will be shielded from further price hikes until capacity growth slows and oil prices rise.
He expects prices will continue to drop throughout the year and could reach their lowest levels around mid-2018, even while general inflation is expected to rise.
"Generally at the moment I would say there is little signs that airlines are cutting back, and until they do, I think the market is going to be under pressure."