Ryanair boss Michael O'Leary predicts some rivals will falter this winter

Budget carrier Ryanair has reported growing profits and repeated its warning that rival airlines would become "casualties" this winter.

Dublin-based Ryanair said it had 28% more passengers and 23% higher revenues year on year during April to June.

However, its yield - the money it makes per passenger - was down 6% and could drop as much as 20% in the winter.

The carrier said expansion plans were on track, with more airports vying for Ryanair flights than it could handle.

Ryanair's pre-tax profits during the quarter were up 28% to 57.7m euros.

However, the strong year-on-year growth figures were flattered by the fact that a year ago Ryanair bought its faltering rival Buzz, sustaining substantial restructuring costs which weakened that quarter's results.

'Chronically loss-making competitors'

Ryanair chief executive Michael O'Leary said the numbers reflected "the continued disciplined roll out of Ryanair's low-fares model".

And he repeated his prediction that both "high cost, high fare" rivals and other budget carriers would not be able to compete with his company.

This winter the industry could expect "even more airline casualties", he said in a statement, as "chronically loss making competitors" tried to "dump prices".

As a result, Ryanair would see its yields fall by between 5% and 10% this summer, and between 10% and 20% this winter.

The cautious yield forecast is a repeat of guidance given to investors earlier in the year - this quarter's decline of 6% is at the lower end of predictions.

Soaring oil prices, which have troubled many Ryanair rivals, have not been a problem so far, with the company being "almost fully hedged" until the end of September.

However, after that date Ryanair will be "largely unhedged", because Mr O'Leary expects oil prices to fall over the medium term and "it would be unwise to lock-in [oil prices] at the current high rates".

Driving down airport costs

Ryanair also said its expansion programme was on track, with its two new bases at Rome Ciampino and Girona near Barcelona performing "particularly well".

The company is now eyeing the new EU member countries, and says it has "far more offers" from airports vying for its business than it can presently handle.

This would "drive down airports costs", Ryanair said.

Mr O'Leary also took a swipe at UK airport operator BAA, which is currently its opponent in a High Court battle over airport charges.

Ryanair objects to a special fuel levy charged to pay for a fuel hydrant system. The airline argues that BAA has recovered more than three times the original cost of the system.

BAA, in turn, recently raised Ryanair's landing fees at Stansted airport.