A standing area with "vertical seats" will be introduced at the back of its fleet of 250 planes.
He said that charging customers £1 to make use of facilities would encourage travellers on one hour flights to use lavatories at the airport instead of on the aircraft.
The Irishman said he intended to introduce coin-operated loos and added: "The other change we've been looking at is taking out the last 10 rows of seats so we will have 15 rows of seats and the equivalent of 10 rows of standing area."
A Ryanair spokesman said that Boeing had been consulted over refitting the fleet with "vertical seats" which would allow passengers to be strapped in while standing up, which would cost between £4 and £8 per person.
Those prices will be very attractive when they arrive. But, here and now, families going on holiday this summer had better beware of the additional costs of taking any bags with them. Online comparison website travelsupermarket.com claims that Ryanair has the lowest hold luggage allowance among Britain and Ireland’s top dozen airlines.
For example, Ryanair sets its allowance for hold luggage at only 15kgs – 8kgs less than British Airways. If a bag exceeds the weight allowance by 10kg, Ryanair imposes an additional charge of £35
At the same time as talking about cutting ticket prices in future, Ryanair is substantially increasing baggage charges with effect from today. Instead of £15 for each checked in bag, Ryanair is charging £20 throughout July and August. Passengers who fail to declare the bag online at check in will see airport bag check in fees rising from £35 to £40 each way.
Safety testing will be carried out next year.
However, a spokesman for the Civil Aviation Authority said the plans would struggle to meet safety requirements.
He said: "It's aviation law that people have to have a seat-belt on from take-off and landing so they would have to be in a seat. I don't know how Mr O'Leary would get around that one. During turbulence passengers also have to have a seat-belt on."
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