Ireland-based budget carrier Ryanair has warned that its average fares are to grow by 12 per cent this year, having already seen similar increases in the 12 months ending March 2011.

The airline said an enhanced mix of routes and bases; slower traffic growth; and higher fuel charges by competing carriers would be behind the increase in ticket prices. It comes after Ryanair saw a 26 per cent growth in full year profits to more than EUR400m (£347.5m) - despite the downturn and disruption caused by the Icelandic volcanic eruption.

A spokesperson for Ryanair said: "We cautiously expect that our average fares will rise by up to 12 per cent this year due to a better mix of new routes and bases, slower traffic growth, and higher competitor fuel surcharges. "However, these higher fares will only help us to finance higher fuel and rising sector length related costs, and accordingly, we expect profit after tax for FY12 to be similar to the FY11 result."