RYANAIR’S AFTER-TAX profit fell by 34% in the first three months of its financial year as soaring fuel costs and lower fares weighed on earnings.

The airline reported a profit after tax of €538 million for the quarter to the end of June, down from €820 million during the same period last year.

Passenger numbers, however, continued to grow, rising 6% to 61.3 million, while revenue increased by 1% to €4.38 billion.

Ryanair said average fares fell by 6% during the quarter, while operating costs rose 11% to €3.81 billion.

Chief executive Michael O’Leary said the airline’s results had been impacted by a spike in the cost of its unhedged jet fuel, as well as weaker fares.

“Q1 fares required stimulation as the Middle East conflict led to consumer hesitancy, concerns about EU jet-fuel shortages, economic uncertainty and later bookings,” O’Leary said.

He added that the price of the airline’s unhedged jet fuel more than doubled during the quarter.

Despite the drop in profits, Ryanair said it remains on track to carry 216 million passengers during the current financial year, an increase of 4%.

The airline also said it is now debt free after repaying its final €1.2 billion bond in May.

Looking ahead, however, O’Leary warned that uncertainty remains.

While bookings for the summer are strong, he said passengers continue to book closer to their departure dates than last year, making demand harder to predict.

He added that fares for the current quarter are “trending modestly down” compared with the same period last year.