After a turbulent summer of strikes and flight cancellations, Ryanair has reported a 7pc slump in half-year profits to €1.2bn (£1.1bn) for the key six months to September 30.

The low-cost carrier blamed higher fuel prices and industrial action, which increased staff and passenger compensation costs.

However, revenue rose 8pc to €4.8bn over the period, with passenger numbers rising 6pc and the number of seats filled per flight remaining unchanged at 96pc.

Shares jumped 5pc to 12p in early morning trade.

Michael O’Leary, chief executive, remains optimistic, focusing on the 3pc decline in average fare prices to €46 and a 27pc jump in ancillary revenues, which includes baggage fees and on-board food and services.

Earlier this month the budget airline announced that full-year profits would be 12pc lower than expected after its worst year on record for European strike disruptions, warning there may be worse to come.

Mr O’Leary said: “This full year guidance remains heavily dependent on air fares not declining further (they remain soft this winter due to excess capacity in Europe), the impact of significantly higher oil prices on our unhedged exposures, the absence of unforeseen security events, air traffic control and other strikes and the impact of negative Brexit developments."

He added the company could not rule out “further base closures or capacity cuts this winter” if oil prices continue to rise or fares fall further.

The airline has predicted that fares will fall by about 2pc during the second half of its financial year.

The news follows a storm of bad publicity this weekend over the way Ryanair handled a “racist” passenger on one of its flights.

The carrier faced a public backlash for failing to remove a man from the plane after he launched a torrent of abuse at a 77-year old passenger.

Staff on the flight appeared to do little to resolve the situation and many have threatened to boycott the airline.