Low-cost carrier Ryanair has said it is poised to overtake Air France as Europe's third ranking airline, as it unveiled profits and passengers numbers up by almost a half.

Ryanair said it would carry 24 million passengers in the year to the end of March 2004.

The figure, boosted by a doubling in the number of travellers carried by newly-acquired carrier Buzz, would see Ryanair "challenge Air France for the position of Europe's third largest scheduled airline", a statement on Tuesday said.

The claim came as Ryanair announced pre-tax profits of 47.8m euros for the last three months of 2002, compared with 32.9m euros a year before.

Passenger numbers for the quarter were, at 2.69 million, 46% up on a year before.

'Surrounded by opportunities'

Ryanair chief executive Michael O'Leary credited the firm's profits increase on its "disciplined" growth strategy, which highlighted cost control in order to keep down fares.

The airline had identified a "virtuous circle of lower costs, lower fares, faster growth and increasing profits", Mr O'Leary said.

And the firm, which began flying to Frankfurt Hahn airport in December, and is commencing services to Milan's Bergamo airport on Thursday, continued "to be surrounded by opportunities", he added.

'Attractive proposition'

However, Mr O'Leary acknowledged concerns that, in buying Buzz for 23.9m euros (£15.6m; $25.7m), Ryanair was "biting off more than we can chew".

"We are conscious of this," he said.

"However, the purchase price made this deal a very attractive proposition.

"The time to buy is when everyone else is selling and prices are low."

When Buzz's cash reserves were accounted for, the purchase price was an "insignificant" 5m euros, he added.

Investor reaction

Tuesday's report was welcomed by analysts, who have in recent weeks remained cautious over airlines such as British Airways over fears that war against Iraq could hit passenger numbers.

Shares in low cost carrier Easyjet have plunged 30% since it revealed in December that its aircraft were flying emptier than analysts had hoped.

Shane Matthews of NCB Stockbrokers in Dublin said Ryanair's figures were "ahead of expectations".

Ryanair stock stood 1.5p lower at 437.5p in early trade in London on Tuesday.