Ryanair will be bigger than British Airways, the company's Chief Executive Michael O'Leary claimed today as he announced a 59% increase in net profits – taking the low cost airline's bottom line figure to over €239 million for the year.

Bolstered by the figures posted today, Ryanair revealed that it has set a target of carrying more than 30 million passengers in the next three years – and in so doing, overtake both Lufthansa and British Airways to become the largest international scheduled airline in the world.

The company reported that passenger traffic for the year grew by 42% to 15.7 million as average load factors increased from 81% to 84%, primarily due to a 6% reduction in average fares.

This reduction in yields was a result of continuing price promotions, the launch of over 20 new routes, and a new base in Milan-Bergamo, Ryanair said.

Total revenues in the year rose by 35% to €842.5 million, however, operating costs rose at a slower rate by 26%.

Ryanair’s Chief Executive, Michael O’Leary, said: “These results demonstrate how robust Ryanair’s lowest fares business model is in Europe.

"We will continue to lower costs and we will use these low costs and record profit margins to drive down fares even faster and stimulate rapid growth."

Mr O'Leary said that the market had suffered from high fuel prices, the war in Iraq, the impact of Sars and the continuing effect of the economic downturn in many European countries. Despite these difficult conditions, he said, Ryanair’s continued profitability stems from the fact that "we have the lowest costs and the lowest air fares which no other European airline can match".

This is the air carrier's 15th consecutive year as a profits-delivering company and, with up to 40 new airports and nine potential new bases under negotiation, Ryanair anticipates more growth over the next five years.

Ryanair currently employs 1,900 people and expects to carry approximately 24 million scheduled passengers in the current year.

(GMcG)