EasyJet (0871 750 0100, www.easyjet.com) has pledged to undercut all competitors on fares to Spain this summer in its bid to survive the predicted “blood bath” as no-frills airlines battle for survival.

Ryanair (0871 246 0000, www.ryanair.com) recently forecast that several budget carriers would go bust this year as competition forces down prices. As it posted its first losses in 15 years this month, its chief executive, Michael O’Leary, promised that fares would be at least 20% cheaper than its rivals’.

At the time, EasyJet claimed that it would neither be dictated to by Ryanair nor become embroiled in a price war. Last week, however, after posting its second profits warning in five weeks, it revised its position. “We will not be beaten for price to any of the Spanish beach resorts. If someone is offering a fare for £80, we will offer it for £70,” said EasyJet.

It is concentrating its price promise on flights from Liverpool and Stansted to Alicante, Malaga, Palma, Ibiza and Faro. This month, returns to Spain start at £70.98 from the northwest airport and at £75.98 from the capital. “We are happy to take some short-term pain for long-term dominance on these routes,” says EasyJet. “There will be some casualties in the no-frills sector, but it won’t be us.”

Ryanair responds: “EasyJet is just another high-fares airline whose flights to Spain are still more expensive than ours. Our fares are on average 55% cheaper than EasyJet’s.” Ryanair flies from Stansted to Reus (Salou), with fares from £39.79 return.

Three low-cost carriers have gone into receivership in the past four weeks. Duo folded first, leaving passengers £4.5m out of pocket. It was followed by JetGreen Airways, which went under a week after its launch, and Now Airlines, which collapsed last week before a single plane had left the ground.

Dominic Bates

Rabies crisis could bite

The UK is likely to run out of rabies vaccine over the summer, forcing thousands of holidaymakers to travel without the recommended protection.

Rabies kills up to 70,000 people worldwide each year.

It is present in most parts of the world and is particularly prevalent in the Indian subcontinent and southeast Asia. Travellers usually have the choice of two prophylactics, but, in April, one was withdrawn temporarily from the market because of fears that some batches could have been infected with the live virus. As a result, travel clinics have increased orders for the alternative vaccine, and its manufacturer, Chiron, is struggling to meet demand.

Experts predict that the shortage will become critical during the next few weeks, just as many students set off on summer holidays and gap years to high-risk destinations. Nomad (020 7833 4114, www.nomadtravel.co.uk), which operates four clinics in London and Bristol, says: