An airline has seen its shares rise sharply after a profits surge and a rise in revenue.

Budget carrier Ryanair posted 59% surge in profits to €2.18 billion (£1.89bn), revenue up by 30% and launched four new routes from a Scottish airport in the six months to September 30.

The Dublin-based airline expects full year earnings to jump by up to 30% after a record summer and as higher air fares helped offset rising fuel costs.

It said it expecting full year after tax profits to rise to between €1.85bn (£1.6bn) to €2.05bn (£1.78bn), up from €1.43bn (£1.24bn) in 2022-23.

Ryanair shares lifted more than 8% on the news.

ANALYSIS: Budget airline warns on fares increases for Scottish airports

The firm went on to say passengers saw air fares surge by 24% on average and the carrier warned that restrained air capacity across Europe means average fares will remain firmly in double digit percentages this winter.

The group said the fares rise, together with a marked recovery in demand for air travel over the summer - it flew 11% more passengers at 105.4 million over its first half - helped counter a 29% rise in fuel costs.

The half-year was marred by disruption from wildfires across Europe in searing heatwaves, air traffic control strikes and a system failure across the UK over the August bank holiday that saw airports grind to a halt at one of the busiest weekends.

Michael O'Leary, chief executive of Ryanair, said the full-year out-turn would be held back by a steep increase in fuel cost, "making it unlikely that we'll replicate last year's bumper third quarter performance".

READ MORE: Airline launches new route from Glasgow

He said: "Despite uncertainty over Boeing deliveries, a significantly higher full year fuel bill (up around €1.3bn on last year), very limited fourth quarter visibility and the risk of weaker consumer spending over coming months, we now expect that 2023-24 profits after tax will finish in a range of between €1.85bn to €2.05bn, assuming modest losses over the second half winter period.

"This guidance remains highly dependent on the absence of any unforeseen adverse events (for example such as Ukraine or Gaza) between now and the end of March 2024."

Mr O’Leary said: "Ryanair’s shareholders invested €400m in a share placing during the peak of the Covid crisis in September 2020, which was key to Ryanair subsequently issuing a timely, low cost, €850m bond, which helped the group emerge from the Covid pandemic in a position of unrivalled strategic and financial strength.

"The board is therefore pleased to declare a maiden ordinary dividend of €400m (c.€0.35 per share) in aggregate through an interim and final dividend of €200m each, payable in February 2024 and after the AGM in September 2024 respectively."

READ MORE: Airline unveils first of fleet of 'greener' planes

Olly Anibaba, analyst at Third Bridge, said: “Overall, summer passenger traffic numbers are back to or above 2019 levels. Ryanair is now 123% above full year 2019 levels, and key leisure travel destinations include the Greek islands and Southern Europe.

“City breaks have been slower to recover as customers prioritise leisure travel. Our experts believe passenger demand is inelastic during peak summer travel.”

He added: “Regarding fleet flexibility, Ryanair can move capacity to where there is greater demand or increased deals with airports, this is pivotal for net income stability. Wage inflation and staff shortages are anticipated to remain headwinds for Ryanair in the coming 12 months.”

The airline said it earlier responded to a UK Government cut in air passenger duty for domestic travel by introducing nine new routes across the country, including four routes from Edinburgh to Belfast, Bournemouth, Newquay and London Stansted.

It also signalled 10,000 new jobs for “highly trained aviation professionals” as the group expands its fleet to 800 aircraft in the next 10 years.

Mr O’Leary said action is needed over air traffic control issues in Europe.

He said: “The urgent reform of Europe’s inefficient ATC system is one of the most significant environmental initiatives the EU can deliver. In September, we delivered a petition, signed by 1.5m customers, calling on the EC to protect the single market for air travel by protecting overflights, while respecting ATC unions right to strike, as is already the case in Greece, Italy and Spain.”