Ryanair has reported a profit of €18 million for the 3rd-quarter of last year which is an increase of €3 million on the same period in 2011.

Between July and September traffic on the airline grew by 3% to 17 million passengers.

The company says it now expects full-year profits to be higher than previously thought at €540 million.

That is a 7% increase on 2011.

3% rise in passenger numbers

In a statement the company said that the revenue increase by 15% in Q3 to €968.8 million was driven by an 8% increase in yields and a 3% rise in passenger numbers.

The firm says that it remains "by some distance" the lowest-cost producer in the industry.

It also notes that 22% of its Spanish passengers are travelling on business trips.

Ryanair Deputy-Chief Executive is Howard Miller.

He told Breakfast Business here on Newstalk that a 19% increase in oil costs has not affected fares.