Ryanair has reported third quarter profits fell eight per cent to €95 million.

The result comes as average fares fell by 17 per cent, to €33 per passenger, while traffic grew 16 per cent to 29 million customers.

Third quarter unit costs were cut by 12 per cent, while ex-fuel unit costs were down six per cent.

Ryanair chief executive Michael O’Leary said: “As previously guided, our fares this winter have fallen sharply as Ryanair continues to grow traffic and load factors strongly in many European markets.

“These falling yields were exacerbated by the sharp decline in sterling following the Brexit vote.

“Ryanair responded to this weaker environment by continuing to improve our “Always Getting Better” customer experience, cutting costs, and stimulating demand through lower fares which has seen load factors jump to record levels.”

Ryanair continues to grow capacity, new routes and bases, at a time when other EU airlines are also adding capacity, and accordingly the price environment remains weak.

“We expect the uncertainty post Brexit, weaker sterling and the switch of charter capacity from Turkey, Egypt and North Africa into Spain and Portugal, will continue to put downward pressure on pricing for the remainder of this year and financial 2018,” the airline said in a statement.