Ryanair profits plunge

Budget airline Ryanair said high fuel prices had hit profits hard, but it remained on track for the year.

First quarter profits dropped 29% to €99m, the airline said, with earnings per share dropping 27% to 6.86c.

This fall offset increased revenues, which rose 11% to €1.28bn, as traffic grew 6% and average fares rose 4%.

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The firm suffered from high fuel prices - which made up 47% of operating costs during the period - as well as economic problems in the eurozone and heavily discounted fares on new routes.

Chief Executive Michael O'Leary said the airline's outlook remained cautious for the year, with expectations full year traffic would grow 4%.

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

"Until we get some second half yield visibility our guidance for full year 2013 remains unchanged, in the range of €400m to €440m as previously guided".