Ryanair braced for difficult winter

The Dublin-based carrier, which flies from a number of regional airports including Leeds-Bradford, is expecting traffic growth of one per cent between September and March, down from seven per cent this summer following winter capacity cuts, Mr O’Leary said.

The outlook came as the airline, which expects to carry 79 million passengers this year, reported an 11 per cent rise in revenues in the quarter to June 30 to 1.3 billion euros (£1bn) as six per cent traffic growth combined with a four per cent rise in average fares.

However, Mr O’Leary said a 27 per cent surge in fuel costs was behind a 29 per cent slide in underlying pre-tax profits to 99 million euros (£77.5m) in the period.

Ryanair reported a 15 per cent rise in ancillary sales - which includes baggage and administration fees, as well as in-flight food and drink - to 286 million euros (£223.9m). Ancillary sales now account for 22 per cent of all revenues.

The carrier, which has a fleet of 294 planes, said growth in the first quarter was dampened by the EU-wide recession, austerity measures and also heavy discounting at new bases including Cyprus, Denmark and Hungary.

The airline will see its 51st base open in Maastricht, in Holland, in December, and it hopes to add up to two new bases later this year.

Mr O’Leary hit out at the Spanish government for hiking airport taxes at the start of July and welcomed a Court of Appeal decision to dismiss BAA’s latest appeal against a Competition Commission recommendation to sell Stansted Airport.

Ryanair mounted a fresh bid to seize control of rival Aer Lingus last month by tabling an offer valuing the company at around 694 million euros (£559.6m).

The airline, which already owns a 29.8 per cent stake in Aer Lingus, requires approval from EU regulators for the deal to go ahead. A previous takeover attempt in 2006 was rejected.

Ryanair said it would be “inappropriate” to comment while the airline is engaging with regulators.