Ryanair, Europe's biggest budget airline, undershot analyst forecasts with a profit slide of 29% in the three months to June.
The airline said the weak economic outlook for Europe would continue to restrain fare growth for the rest of the year, but maintained its forecast of a profit of between €400m and €440m for the year to March.
"Austerity is biting. There is just less money around," said Chief Financial Officer Howard Millar.
"There are no particular bright or black spots."
Average fares were up 4%, in line with mid-single digit growth forecast by the airline in May, and were on track for average growth of around 3% in the year to March, Mr Millar said.
Ryanair does not expect to change plans to ground 80 of its 270 planes over the winter due to high fuel costs, he said.
"With oil prices at $100 per barrel it really doesn't make sense to fly these aircraft," Mr Millar said. "The more you fly, the more you lose."
