Low-cost airline Ryanair announced a jump in profits today but said passenger numbers will fall 10% this month as it grounds more planes this winter.

The Dublin-based operator posted profits of 544 million euro (£467.5m) in the six months to September 30, an increase of 20%, as a 13% rise in average fares helped it offset a 37% hike in fuel costs.

The company is pulling 80 of its aircraft to reduce winter losses amid soaring fuel prices and expects traffic to fall 4% in the second half, with 500,000 fewer passengers flying in November.

The strategy will improve its full-year profit forecasts by 10% to 440 million euro (£378.2m), reflecting a boost to its margins.