High-flying Ryanair brought down to earth by cost of fuel

The carrier, which will introduce two new routes at Leeds-Bradford in November, said its fuel bill rose by 49 per cent, or £123m on a year ago, to £375.8m.

The Irish airline, which operates more than 1,500 flights a day, warned that traffic would fall four per cent in the next winter season as high fuel costs will force the airline to ground flights.

In the three months to the end of June, first-quarter profits rose by one per cent, to £122.6m.

The costs offset a 29 per cent rise in revenues, to £1bn, reflecting an 11 per cent rise in average fares and an 18 per cent jump in passenger numbers, to 21.3 million.

From November, Ryanair will fly two new routes from Leeds Bradford airport to Kaunas, in Lithuania, and Riga, in Latvia, bringing the airline’s winter schedule up to 13 routes.

Ryanair said fuel prices remained “stubbornly high” with spot prices currently at $118 (£72.30) a barrel.

However, it has bought 90 per cent of its requirements for the current financial year to next March at $86 a barrel, an 18 per cent increase on last year.

Chief executive Michael O’Leary said: “High oil prices are forcing competitors to further increase their fuel surcharges and fares, which make Ryanair’s low fares even more attractive.

“It will also drive further consolidation, and more airlines will exit the industry. This will generate growth opportunities for Ryanair because we operate the most fuel-efficient aircraft.”