Budget airline operator Ryanair has reported an 89 per cent reduction in losses for the third quarter ending 31 December 2009, compared with the same period last year.

During the three-month period, the company posted an adjusted loss after tax of €10.9m (£9.5m) compared with €101.5m (£88.8m) for the quarter ending 31 December 2008. Passenger numbers increased by 14 per cent to 16 million.

Ryanair said that it expects to continue increasing its market share amid difficult trading conditions by taking advantage of the consolidation and closure of rival operators, particularly in Italy, Scandinavia, Spain and the UK.

Michael O'Leary, the company's chief executive officer, said: "These numbers are distorted by a 37 per cent fall in fuel costs which offset a 12 per cent decline in average fares.

"Yields fell by 12 per cent, which was better than anticipated due to an improved mix of new routes and bases this winter and deep cuts in loss making winter capacity at high cost airports such as Dublin and Stansted."