Ryanair has reported record results for the twelve months to the end of March, with pre-tax profits up almost 30% at just under €296m.

The no-frills airline, which celebrates 20 years in operation this month and is planning to overtake British Airways as Europe's biggest carrier later this year, increased its turnover by 24% to just under €1.4bn.

During the year Ryanair increased the number of passengers it carried by 19% to 27.5m.

Ryanair says its operating costs rose by 25%, which was slightly higher than the growth in its revenues, and it blamed this on higher fuel prices.

The company says the majority of its growth during the year was attributable to fuel surcharges imposed by other short-haul airlines, which widened the gap in ticket prices between Ryanair and its competitors. Ryanair has refused to impose fuel surcharges.

In notes accompanying the results, chief executive Michael O'Leary says the airline has instructed its lawyers to prepare a legal action to oppose a second terminal at Dublin Airport built by the Dublin Airport Authority on competition and public procurement grounds.

The airline wants the second terminal to be built and operated by a competitor to the Dublin Airport Authority.