Ryanair has posted a 24 per cent decline in quarterly profits after disruption caused by the Icelandic volcanic ash cloud earlier this year cost the budget airline €50m (£42.4m).

During the three months to 30 June, the Ireland-based carrier also saw fuel costs increase by more than a third compared with the same period in 2009 as a result of higher oil prices. The carrier said that "unnecessary airspace closures" following the eruption of Eyjafjallajoekull had led to the cancellation of 9,400 flights and a loss of nearly 1.5 million passengers during April and May.

However, Ryanair confirmed it expects full-year net profits to increase by up to 15 per cent - around €350-375m (£297-318m), which is in line with its previous expectations. A spokesperson for the airline said: "Our outlook for the year remains cautious and unchanged. We expect passenger volumes will rise by 11 per cent to 73.5 million.

"We anticipate that yields in Q2 will rise by between 10 per cent to 15 per cent, but since we have no visibility, we must remain cautious about yields for the coming winter (H2)."