RYANAIR made a £12.52m profit for the third quarter, compared with an £8.6m loss the same period last year, it announced today.

The carrier, the second biggest operator by passenger numbers at Liverpool John Lennon airport, said its full year profit guidance has been raised from £369.7m to £403.3m.

Revenues for the third quarter rose by 13% from £626.9m last year to £709m, helped by a 17% increase in fares, although fuel costs increased by 18%.

Chief executive Michael O'Leary said the improvement was helped by benign weather conditions in December compared with widespread snow closures in December 2010.

Margins improved after the carrier grounded 80 aircraft during the low season.

Ancillary revenues, from charges such as baggage, seat reservations and onboard purchases, rose 6% to £148.7m.

He also called on the UK Government to scrap its Air Passenger Duty (APD) tax which he says is damaging UK tourism and jobs: "A similar visitor tax in Holland was scrapped after just one year when it was proven that its detrimental impact on Dutch tourism was far greater than the revenue it generated," he said.

He added that if the positive trends in the third quarter continue into the final quarter he expects the carrier's full year profits to exceed previous guidance and rise to £403.3m.

Liverpool stockbroker Panmure Gordon said today: "Over the medium term the anticipated capacity growth deceleration should drive further profit growth and strong cash generation. We retain our 'Buy' recommendation."