Low-cost carrier Ryanair has seen profits fall as the price of fuel eats into margins.

Profits after tax fell 21 per cent to €78 million in the first quarter of the financial year, despite a five per cent rise in revenues.

The Irish carrier said the drop was expected, and it still expected to meet expectations for full year profit.

Fuel costs grew by six per cent over the period, the company said in a statement this morning,

Fuel now accounts for 47 per cent of total costs at the airline.

Easter also fell earlier than usual this year, meaning profit from the period was included in Ryanair’s fourth quarter results rather than the first quarter.

In the first quarter, passenger traffic rose three per cent to 23.2 million.

However, the sharpest growth area was in so-called ancillary revenues which jumped 25 per cent in the period to €357 million.

The company is forecasting net profits in the range of €570 million-€600 million for the full year.