STANSTED-based airline Ryanair has announced record traffic and profits, again bucking the downward trend in the aviation industry.o

From September 1 to December 31 last year, net profits increased by 35 per cent to 28.8m euros (£17.5m), compared with the same period a year ago.

Total revenue rose by 18 per cent to 135.5m euros (almost £83m) and passenger traffic grew by 30 per cent to 2.7 million.

The figures were published a day after British Airways announced losses of £160m for the third quarter, compared with a profit of £65m 12 months earlier.

Ryanair chief executive Michael O'Leary put the company's continued success down to its low fares and operating costs.

He said:" These are a very strong set of results which underline the resilience of Ryanair's unique low fares model. Ryanair led the fight back following September 11 by slashing fares and offering one million seats for sale at just £9.99.

"Although average fares fell by ten per cent, our continuing focus on costs meant they rose at a slower rate than sales, with the result that during one of the worst quarters in commercial airline history both Ryanair's margins and net profits increased to record levels."

Ryanair has announced eight new routes from Stansted to Continental Europe and is set to buy up to 150 new Boeing 737-800 series planes, with 100 firm orders made and an option for 50 more.