By Daniel Hunter

Budget airline Ryanair have reported a 25% increase in full year profits to €503m (£406m) for the year to March.

Fare rises have helped offset a sharp rise in fuel costs as the airline said traffic grew by 5% while fares rose by 16% on average, which helped to overcome a 30% rise in fuel costs.

However, it warned profits in the current financial year could be lower.

"Recession, austerity, currency concerns and lower fares at new and growing bases in Hungary, Poland, provincial UK and Spain will make it difficult to repeat this year's record results," the company said in a statement.

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