Ryanair has announced third quarter profit losses.

Low-cost airline Ryanair has announced a third quarter (Q3) profit loss of €102 million (£92m) – compared with a 2008 Q3 profit of €35m – even though its passenger numbers have grown 13% to 14m.

The airline also reported a rise in fuel costs of 71% to €328m – accounting for 47% of its total operating costs.

Michael O’Leary, Ryanair’s CEO, said: “Our Q3 loss of €102m was disappointing, but in line with expectations, and was almost entirely due to a €136m increase in fuel costs.

“The general economic environment remains extremely difficult, as the recession saps consumer confidence, but this is proving to be good for Ryanair’s traffic growth, as more and more passengers switch to Ryanair’s lowest fare lowest cost model. We will continue to lower fares to maintain our traffic growth and high load factors.”

The airline predicts lower fuel costs for the coming year thanks to its hedging programme, which will result in a 38% reduction in oil prices. It also expects its fares to fall by around 10%, though this could increase if the recession deepens, as O’Leary explained:

“The longer and deeper this recession, the better it will be for the lowest cost producers in every sector. Like Lidl, Aldi, Ikea and McDonalds, Ryanair, is the lowest cost provider – by a distance - in the European airline industry, and we are poised for substantial traffic and profit growth in the coming year as the recession forces millions of passengers to focus on price.”

In January this year, Ryanair’s cash offer for Aer Lingus was rejected by the Irish Government and the airline has revealed that it is “doubtful” it will make another offer.