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Budget airline Ryanair has reported a 24 per cent rise in half-year profits, amid growing passenger numbers.

Europe's largest low-cost carrier said its profit after tax rose to €408 million (£283 million) in the six months to September 30th, up from the €329 million reported for the corresponding period of the previous year.

Ryanair attributed the "record" result to a 20 per cent year-on-year increase in passenger numbers, with 26.6 million people choosing to travel with the airline over the first six months of the year.

The company said revenues also climbed by 24 per cent to €1,554 million (£1,079 million).

Ancillary growth was also strong over the first half, said Ryanair. It revealed that ancillary revenues increased by 54 per cent to €252 million (£175 million) over the period, with the rise attributed to improved penetration of the car hire, hotel and travel insurance markets and stronger onboard sales and excess baggage revenues.

Ancillaries now account for just over 16 per cent of Ryanair's total revenues, with the airline stressing that it is making "steady progress" towards its target of 20 per cent.

Ryanair's increased profits come despite a one per cent decline in yields, or the amount of revenue per seat, during the first half.

The airline's unit costs also increased by five per cent, with higher fuel, staffing and airport charges blamed for the rise.

But Ryanair chief executive Michael O'Leary stressed that the carrier's costs remained in check.

"We continue to aggressively tackle costs and anticipate that unit costs for the remainder of the year will grow by five per cent, slightly lower than previously guided," he said.

Meanwhile the airline expects to report higher full-year net profits due to better winter yield forecasts and cost savings.

Ryanair says it expects its annual net profit for the year to increase by 17.5 per cent to around €470 million (£326 million), rather than the €440 million (£305 million) previously anticipated.