Ryanair profits have plunged amid lower fares and higher fuel and staff costs

The low-cost airline cited lower fares and higher costs for fuel and staff as reasons for the decline.

Chief executive Michael O’Leary said: “The two weakest markets were Germany, where Lufthansa was allowed to buy Air Berlin and is selling this excess capacity at below cost prices, and the UK, where Brexit concerns weigh negatively on consumer confidence and spending.”

The airline said its average fares fell 6% during the quarter, but this was partially offset by 14% higher ancillary revenue, such as baggage, food and other extras.

The forecast for profits after tax for the year remains unchanged at between 750 and 950 million euros (£675 million-£850 million).