Ryanair has said that its after-tax profits grew by 10% to €596m in the first six months of its financial year.
The airline said its revenues for the six months to the end of September increased by 15% to €3.11 billion.
Its traffic figures grew 7% to 48 million passengers and average fares rose by 6%.
Ryanair said its unit costs were up 8%, mainly due to a 24% (€218m) increase in fuel. But excluding fuel, adjusted unit costs rose by 2%.
Pre-tax profits for the six months rose to €679.3m from €619.6m the same time last year.
The company said the profit figure exceeded its expectations and came on the back of strong summer bookings, especially after the London Olympics, a 6% rise in average fares and a lower than forecast fuel bill.
Ryanair shares closed almost 6% higher in Dublin this evening.
The airline said it would raise its full-year profit guidance to a range of €490-520m - about 20% higher than previous forecasts.
Its results statement said that a combination of higher oil prices and EU wide recession continues to drive significant change in European aviation.
It also used the opportunity to stress its continued interest in buying Aer Lingus. It noted that a number of EU airlines have closed this summer including Windjet in Sicily, OLT Express in Poland, and the UK's bmibaby. These follow earlier collapses of both Malev (Hungary) and Spanair (Spain) in 2012.
Ryanair said that in contrast it continues to find profitable opportunities for growth across Europe as higher cost and less efficient competitors struggle to survive.
The airline said it expects market conditions in Europe to remain tough as recession, austerity, high fuel costs, and government taxes dampen air travel demand.
It said that a second special dividend of 34 cent per share was approved at its AGM in September and will be paid to shareholders at the end of November. Ryanair said it has now returned €1.53 billion to shareholders - via dividends and share buybacks - over the past five years.
Ryanair determined to address competition concerns
Ryanair has said it is still determined to explore all commercial options to address any competition concerns the European Union may have in order to secure approval for its proposed takeover of Aer Lingus.
On Morning Ireland, Ryanair's deputy chief executive Michael Cawley said that its plans for Aer Lingus would see it continue to run those elements of the business that are successful, enhance them and lower the costs.
He said that while the airline does not carry freight, it would enhance develop and make more cost efficient the cargo element that Aer Lingus currently has. Mr Cawley said that would benefit exporters.
In a statement released today, Ryanair said that as part of the EU's Phase 2 review which began on August 29, Ryanair had submitted an ''unprecedented remedies package''.
This package would see multiple up-front buyers committing to open new bases in Ireland, and enter all of the Ryanair/Aer Lingus crossover routes which are not currently served by other substantial airline competitors.
''We believe this is the first EU airline merger where the remedies proposed delivers not one, but at least two up-front buyer remedies, and where all of the “merger to monopoly routes” are remedied not just by passive slot divestments but by active up-front buyers and new market entrants,'' Ryanair's chief executive Michael O'Leary said.
