Ryanair has reported pre-tax profits of just under €156m for its first quarter to the end of June, up from €128.6m in the same period last year.
Shares in the airline rose sharply as a result.
Revenue grew by 22% to €693m as passenger numbers rose by 18% to 12.6m.
Ancillary revenues, which include areas such as excess baggage charges, car hire, travel insurance and on-board sales, jumped by 53% to €117.1m.
Ryanair said its costs increased by 5% due to higher airport charges, fuel and staff costs. Fuel costs rose 14% and fell as a proportion of total costs, helped by the stronger euro.
Chief executive Michael O'Leary said passenger volumes this winter would rise by 18% to 50m, a lower rate of growth than the 24% the airline had previously expected.
This is mainly because it is grounding seven of its 40 planes based at Stansted because of increased charges there.
He added that the outlook for the rest of the year remained cautious, saying revenue made from each passenger would drop by 5% to 10% this winter compared with last year.
Ryanair shares jumped by 54 cent to €5.25 in early trading in Dublin.
