No frills airline Ryanair made a €35 million (£28.8 million) loss in the last three months of 2013, owing to heavy discounting on fairs and a strong pound.

The carrier said more passengers booked flights during the period compared with a year before, but pressure on prices meant income was still lower.

The average cost of a ticket was nine per cent lower than the same time last year, when net profits were £15 million.

However, paid-for extras such as credit card fees and priority boarding increased in value by 13 per cent over the same period.

Ryan chief executive Michael O’Leary said the overall loss was in line with expectations for the period.

Ryanair is popular with small businesses because of its emphasis on cheap, efficient travel.