London  - Irish budget airline Ryanair Monday reported half-year pre-tax profits of 419.4 million euros (618.4 million dollars) but warned that continued cut-price fares would result in losses for the rest of the year.

The airline said falling fuel costs had boosted profits in the six months up to the end of September. Results in the same six months last year were 105.2 million euros.

Ryanair said revenue was down by 2 per cent but results were "heavily distorted" by a 42-per cent drop in fuel costs compared with the same period in 2008.

The airline said this "masked" a 17-per cent decline in average fares. Prices would fall 20 per cent over the rest of the year, resulting in losses for the last two quarters, it said.

Unlike other airlines, Ryanair has vowed not to introduce fuel surcharges as a result of high oil prices last year and said it would continue offering low fares throughout the recession. (dpa)