Ryanair, Europe’s number one low fares airline, has announced record net profits of e115.7million for its first three months of the financial year which ended 30 June.

Passenger numbers grew by 25 per cent to 10.7 million passengers. The results showed revenue increasing by 40 per cent to e566.6million, while costs, including fuel, rose by just six per cent to e167.5 million. The increase in Ryanair’s profitability boosted cash balances which rose by e212.4 million to e2.18 billion.

Ryanair’s Chief Executive Officer, Michael O’Leary, said: “The underlying causes of these stronger first quarter yields was primarily the presence of Easter in the quarter (and its absence from the prior year comparable), many more ‘sun’ destinations, the impact of competitors fuel surcharges which continue to drive traffic towards Ryanair, the initial impact of our baggage charging initiative, and the earlier launch of our new bases and routes, much of which took place in the fourth quarter last year.”

Passenger figures for July were also positive, reaching a total of 3,940,792, which is 23 per cent up on the July 2005 total. Over the twelve months to 31 July 2006, Ryanair carried a total of 37,626,423 passengers.

“We remain on target to achieve our objective of becoming the world’s largest international scheduled airline by passenger traffic, while at the same time growing profitability and reducing costs for the benefit of our passengers, our people and our shareholders. We continue to believe that this growth in traffic and profits will be achieved thanks to Ryanair’s unique combination of lowest costs, lowest fares and industry leading customer service,” concluded Mr O’Leary.