Low-cost airline Ryanair has announced a 26 per cent drop in its third quarter net profits, due to soaring petrol costs.

During the three-month period to 31 December 2004, the company spent a total of E72.5m (£50m) on fuel, up from E43.1m (£29.7m) the year before, resulting in pre-tax profits plummeting from E44.8m (30.9m) to E38.4m (£26.5m).

Like for like passenger numbers for the period were up 13 per cent.

Michael O’Leary, chief executive, said: “Fuel prices remain high and will continue to affect our future guidance. We expect our next quarter fuel costs to be £5m (£3.45m) lower than the previous guidance.”