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Fuel rises costs €40m in Ryanair profits

RYANAIR'S profits have taken a €40m nosedive as a result of rising oil prices.

The airline reported profit after tax of €99m, down 29pc compared to the same time last year, with fuel costs up by 27pc.

The figure fell short of analysts expectations of a profit of €106m.

Revenues for the three month period to the end of June rose by 11pc to €1.284bn while passenger numbers were up by 6pc.

Ryanair's chief executive Michael O'Leary said the airline's outlook remains cautious for the rest of the year.

Operating unit costs rose 10pc to €544m, while average fares were up 4pc.

Mr O'Leary said: "Currently, we have no visibility of next winter's yields but expect that continuing austerity, EU recession, and lower yields at new bases will restrain fare growth."

The airline does not expect to change plans to ground 80 of its 270 planes over the winter due to high fuel costs.