Ryanair profits down 85% in three months to June

Ryanair has reported an 85% drop in profits during the three months to June of this year.

The airline says its profits after tax for the quarter were just €21m (down by €118m) due to rising fuel costs and difficult trading conditions.

It says the price it paid for fuel almost doubled during the period, while the absence of Easter from the quarter made trading conditions particularly hard.

Ryanair's traffic was actually up 19% to 15 million passengers while total revenues grew 12% to €777m.

The airline is vowing that it will not be hiking prices in response to the financial situation.

Ryanair boss Michael O'Leary said: "Fuel now represents almost 50% of our total operating costs compared to 36% last year…(but) Ryanair remains committed to our guarantee of no fuel surcharges – ever."

Away from the main news event this morning - the airline's plunge in profits - Ryanair said passengers will shortly be able to use their mobile phones and Blackberrys on 10 Dublin-based aircraft in a trial test which will expand to almost 40 aircraft by the year end.