Rising oil prices has knocked €40m off Ryanair's quarterly profit for the three months to the end of June.
The airline has reported profit after tax of €99m, down 29% compared to the same time last year, as its fuel costs rose by 27% over the year.
Revenues for the three month period rose by 11% to €1.284 billion while passenger numbers were up 6% to 22.5 million.
It posted a 15% rise in quarterly ancillary sales - which includes baggage and administration fees, as well as in-flight food - to €286m.
Ancillary sales now account for 22% of all revenues for Ryanair.
The carrier said growth in the first quarter was dampened by the EU-wide recession, austerity measures and also heavy discounting at new bases including Cyprus, Denmark and Hungary.
It was also impacted by the costs of a stronger sterling currency against the euro.
Ryanair's chief executive Michael O'Leary said the airline's outlook remains cautious for the rest of the year.
He said he is expecting full year traffic to grow by 4%, while the airline is also anticipating smaller fuel cost increases.
He said that currently the airline has no visibility of next winter's yields but expect that continuing austerity, EU recession and lower yields at new bases will have to restrain fare growth. But Mr O'Leary said the airline's guidance for full year of profits of €400m to €440m remains unchanged.
Last month, Ryanair staged a fresh bid to seize control of rival Aer Lingus last month by tabling an offer valuing the company at around €694m. The airline, which already owns a 29.8% stake in Aer Lingus, requires approval from EU regulators for the deal to go ahead. Previous takeover attempts have been rejected.
In its results statement today, Ryanair said it would be "inappropriate" to comment while the airline is engaging with regulators.
