Average fares fell 3% to €39.40, which the airline said stimulated 9% traffic growth to more than 130 million passengers, with Germany, Italy and Spain the three largest growth markets. Load factor was 95%.

Chief executive Michael O’Leary said: “We are pleased to report a 10% increase in profits, with an unchanged net margin of 20%, despite a 3% cut in air fares, during a year of overcapacity in Europe, leading to a weaker fare environment, rising fuel prices, and the recovery from our September 2017 rostering management failure.”

The airline said it expected above average EU capacity growth to continue into 2019, “which will have a downward effect on fares”.

“This may be partly ameliorated by the switch of some charter capacity back to previously security challenged markets such as Turkey and Egypt,” it added.

“We expect later in the year, some upward pressure on pricing as significantly higher oil prices impact margins, especially those EU airlines who continue to expand despite having no prospect of achieving profitability.

“Ryanair will continue to pursue our load factor active/yield passive strategy. No other EU airline can compete with Ryanair’s prices.”

Ryanair said it remained concerned at the likely impact of a hard Brexit.

“While there is a general belief that an 18-month transition agreement from March 2019 to December 2020 will be implemented and further extended, it is in the best interest of our shareholders that we continue to plan for a hard Brexit in March 2019,” it said.

In these circumstances, it is likely that our UK shareholders will be treated as non-EU and this could potentially affect Ryanair’s licencing and flight rights.

“Accordingly, in line with our Articles, we intend to restrict the voting rights of all non-EU shareholders in the event of a hard Brexit, so that we can ensure that Ryanair is majority owned and controlled by EU shareholders at all times to comply with our licences.”

The airline has also applied for a UK AOC, which it hopes to receive before the end of 2018.

Ryanair added: “Ryanair’s balance sheet remains one of the strongest in the industry.

“At year end, our balance sheet included 400 owned B737 aircraft, all of which were added at their net purchase price, which is a significant discount to their current market value.

“Ryanair continues to generate significant cash flows. In the past year, we generated over €2 billion cash from operations.”

Despite the positivity, Ryanair’s outlook for full-year 2019 is “on the pessimistic side”.

It expects to grow traffic by 7% to 139 million, at flat load factors of 95%.

Unit costs this year will rise 9% due to higher staff and oil prices which will, when adjusted for volume growth, add more than €400 million to the fuel bill.

The airline added that forward bookings were strong but pricing remained soft.

“Since only half of Easter fell in April, we expect a 5% fare decline in Q1 but a 4% rise in Q2 fares,” it said.

“While still too early to accurately forecast close-in summer bookings or H2 fares, we are cautiously guiding broadly flat average fares for full-year 2019.

“We do not expect ancillary revenue growth to fully offset higher costs and lower fares, and so we expect full-year 2019 profits will fall to a range of €1.25 billion to €1.35 billion.

“This guidance is heavily dependent on H2 fares, a normal level of ATC disruptions for summer 2018, the absence of unforeseen security events, and no negative Brexit developments during this period.”

The airline has not included its investment in LaudaMotion in its outlook as any increase to a 75% share ownership remains subject to EU competition approval.