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Ryanair may be carrying more passengers than ever, but soaring fuel costs have taken a sizeable bite out of the airline's profits, prompting fresh questions about what it could mean for travellers heading to and from Spain.

 

The budget carrier, which flies more passengers to Spain than any other airline, reported profits of €538 million for the three months to June. While that might sound like a healthy figure, it's actually 34% lower than the same period last year.

 

The main culprit is the rising cost of aviation fuel. According to Ryanair, operating costs jumped by 11% to €3.81 billion after the price of some of its unprotected fuel supplies more than doubled amid ongoing tensions in the Middle East.

 

For British holidaymakers and expats who regularly rely on Ryanair's low fares, the figures are likely to raise concerns about whether those extra costs could eventually be passed on through higher ticket prices.

 

So far, there are no signs of that happening. In fact, the airline revealed that average fares fell by 6% during the quarter, helping passenger numbers climb by 6% to 61.3 million. Aircraft were also exceptionally full, with seats 94% occupied on average.

 

Ryanair insists that it remains in a strong position thanks to fuel hedging agreements that lock in much of its fuel supply at lower prices. The airline says this strategy gives it a significant cost advantage over rival European carriers during periods of market volatility.

 

The latest results come just days after Ryanair warned travellers heading to Spain and other popular European destinations to prepare for lengthy passport control queues linked to the EU's Entry-Exit System (EES). The airline has spent months highlighting disruption caused by the new border checks and is continuing to press for temporary measures to remain in place while airports work through the problems.

 

Despite the obvious challenges, Ryanair expects passenger numbers to continue growing and is forecasting traffic of around 216 million passengers over the current financial year. The airline is also preparing to expand its fleet with more fuel-efficient Boeing aircraft designed to carry additional passengers while reducing fuel consumption.

 

However, the budget carrier is refusing to predict how much profit it will make this year, pointing to uncertainty over fuel prices, ongoing conflicts in the Middle East, Europe's air traffic control problems and wider economic pressures.