Ryanair plans to raise up to €123 million (£96.8 million) in a placing of ordinary shares later this week.

The budget airline, which yesterday reported a 34 per cent rise in after-tax profits to €21.3 million in the three months to December 31st, said it would use the proceeds to fund the acquisition of 13 new Boeing 737-800 aircraft.

In a placing last March, Ryanair raised £96 million (€122 million) after expenses.

European shareholders hold 52 per cent of Ryanair with the remaining 48 per cent held in the US. The airline wants to increase the ratio of European shareholders, so no shares in the placing will be available in the US.

Ryanair's stock, which rose 16 per cent in the past two weeks, closed at €11.80 in Dublin yesterday, €0.51 weaker, due to the dilution effects of the shares placing.

Its finance director, Mr Howard Millar, predicted 34 per cent growth in revenues in the 12 months to March 31st. Ryanair planned to double in size by 2004, he said - an annual rate of growth of 24 per cent. The company said its chief executive, Mr Michael O'Leary, planned to dispose of up to three million shares, worth €35.4 million at yesterday's closing prices.

Ryanair would reveal plans to create a European hub on February 24th. While declining to say where, Mr Miller said this would be based in either Belgium at Charleroi, Germany at Hahn near Frankfurt, or Italy at Pisa. Six new services would be introduced at this time, he added.

The airline has failed to secure lower passenger landing tariffs from Aer Rianta. It said it planned no new services from Dublin. Passenger numbers from Dublin Airport would stagnate or decline slightly.

Revenues rose 28 per cent to €114.9 million from €89.6 million in the same quarter a year earlier, reflecting 39 per cent growth in passengers carried to 1.89 million from 1.36 million.

Operating costs in the quarter rose 29 per cent to €21.7 million in the three months. The airline said a 66 per cent decline to €2.47 million in marketing and distribution costs was attributable to rising usage of its website, Ryanair.com, through which more than 66 per cent of bookings were processed.

Development of the website prompted a sharp decline in bookings at travel agents, which accounted for 8 per cent of bookings in the quarter. About 24 per cent of bookings were processed at Ryanair's telephone booking system.

While the airline has a fuel hedging policy, Mr Millar accepted fuel prices were rising. Ryanair would offset this increased cost by developing "ancillary revenues" from charter flights, travel insurance and further development of its website. A car hire booking service in partnership with Hertz would be available soon, he said.

Mr Millar said Ryanair was interested also in acquiring second-hand Boeing 737-300 or 737-400 aircraft, which may come on the market as other airlines switched to Airbus aircraft. Such aircraft carry 149 and 170 passengers respectively.

Five of Ryanair's existing fleet of 36 aircraft were fully-depreciated in its accounts already, Mr Millar said. An additional 12 would go ex-depreciation in the next 12 months and six would be fully-depreciated by March 2002.