The prospect of cheaper tickets on Ryanair looks likely as the airline battles to keep passenger numbers up during the winter months.

Reporting its half year results, the budget airline states that trading remains 'challenging' and to get passengers back would require 'continuing price stimulation'.

The airline reported an improved financial situation but still made a loss of over £40 million. That was considerably better than the position the same time last year when it reported a loss of £348 million.

First half year revenues increased 61% to £1.07 billion, as passenger numbers rose 128% from 17.1 million to 39.1 million.

The Covid disruption of Easter traffic, the delayed relaxation of EU travel restrictions into May and June, and the uncertainty caused by the UK's 'confusing' traffic light system this summer kept average fares down at just £27.88 (down 30% on H1 last year).

In June, Ryanair took delivery of its first B737-8200 'Gamechanger' aircraft. The airline expects to have over 65 in the Group fleet by next summer. It hopes these planes will further widen the cost gap between Ryanair and all other European airlines over the next decade.

Michael O'Leary, chief executive, said: "Ryanair was one of the very few airlines to use the Covid crisis to place significant aircraft orders, to expand our airport partnerships and to secure lower operating costs so that we can pass on even lower fares, post Covid, to our customers.

"Together with our airport partners, we are leading Europe's traffic recovery and we plan to deliver accelerated growth in both traffic and jobs over the next five years."