Irish budget airline Ryanair has reported pre-tax profits of €76.9m for its first quarter to the end of June, an increase of 32% on the same period last year.
However, Chief Executive Michael O'Leary said the airline was cautious about the outlook for the rest of the year because of high oil prices and the terrorist attacks in London.
Total revenue was up 35% at €299.6m, while passenger numbers in the period were 30% higher than a year earlier at 8.5 million.
Yields, or average fares, increased by 3%, but costs were up 6% as fuel costs more than doubled to just under €110m.
Mr O'Leary said the rise in yields, which was slightly better than expected, was mainly due to fuel surcharges imposed by major European carriers to cope with the cost of higher fuel.
He said bookings had fallen for a number of days in the immediate aftermath of the attacks on London.
He added that forward bookings would not be materially affected if there were no more attacks, but further incidents could hit bookings and yields.
Mr O'Leary predicted that more low fare airlines would be forced out of the market this year as intense competition continued.
