Ryanair has announced quarter one profits fell €40 million, to €99 million, as rising fuel prices hit the low-cost carrier.

Revenues at the carrier increased 11 per cent to €1.3 billion, as traffic grew six per cent.

Average fares at the carrier rose four per cent, driven by a ten per cent increase in fuel prices.

Ryanair paid 27 per cent over the quarter for fuel when compared to last year, with bills coming to €117 million.

Chief executive Michael O’Leary said: “Quarter one yield increases were dampened by the EU wide recession, austerity measures, and heavily discounted fares at our new base launches in Cyprus, Denmark, Hungary, Poland, Provincial UK and Spain.

“Despite this challenging environment Ryanair continues to grow its traffic across Europe while maintaining the lowest unit costs in the airline industry, and generating healthy profits as evidenced by the eight per cent after tax margin achieved in the first quarter.”

In other news, Ryanair welcomed the UK Court of Appeal decision last week to dismiss the latest BAA/Ferrovial appeal against the 2008 Competition Commission’s recommendation that Stansted be sold to promote competition and the consumer interest.

“We now call on the UK Competition Commission to expedite the sale of Stansted,” added O’Leary.