Ryanair continues to please investors reporting a 19.4 per cent rise in pre-tax profits from £7.7 million to £9.2 million in the three months to the end of June.

The strong performance reflects continued growth in the number of passengers flying with the airline in the first quarter of its financial year and the addition of six new European routes, according to Ryanair chief financial officer, Mr Michael Cawley.

The airline now expects to boost passenger numbers to close to five million over the next nine months and to introduce further new routes following the delivery of 25 aircraft in March. The shares traded largely unchanged after the results yesterday, closing at 560p in Dublin.

After tax, the airline showed a 65 per cent increase in profits, up from £4.3 to £7.1 million at the end of June. The underlying rate of growth is substantially reduced however by excluding the one-off flotation bonus paid to Ryanair staff. This brings the after-tax profit increase to 27 per cent, from £5.6 million to £7.1 million. Over the three months, Ryanair's total revenues grew by 40 per cent to £57.8 million while passenger numbers swelled by 22 per cent to 1.2 million. Together with increased volumes the airline also reported a higher spend by those travelling on its routes. The strong performance was achieved despite a surge in operating costs. Over the three months, they rose ahead of revenues, growing by 45 per cent to £49.3 million. Much of the higher costs reflect the increase in the group's activities as well as the expansion of its aircraft fleet from 14 to 20.

Staff costs rose by 51 per cent from £0.6 million in the same period last year to £7.6 million. This includes the cost of Ryanair's enlarged workforce. It currently employs 1,106, up from 791 at the end of March. It also reflects pay increases due to staff under the national wage agreements.

Higher depreciation costs also contributed to higher operating expenses at the airline. These costs increased by £3.1 million to £5.8 million as a result of the expansion of its airline fleet. Fuel costs also rose, up 55 per cent to £7.2 million, again reflecting the greater number of flights and traffic on the new routes. Other factors included higher maintenance costs, up 53 per cent to £7 million and marketing and distribution costs of £5.8 million.

Earnings per share increased by 39 per cent to 4.46p.