BUDGET airline Ryanair yesterday said it remained on track to hit annual forecasts but sounded a cautious note about the winter.

The Dublin-based carrier said it had managed to combat higher fuel prices by raising ticket prices and improving cost efficiencies across the business.

Figures released yesterday showed it carried three million passengers last month, a 27 per cent increase on the same month last year, and that its planes were 87 per cent full, unchanged on last time.

Unlike many of its rivals, Ryanair has not implemented a fuel surcharge in response to the soaring cost of crude oil in recent months.

However, it said it expected rivals to reduce their underlying fares in a bid to be more competitive. This meant the amount Ryanair earns per passenger would be slightly lower, as expected.

The group predicted passenger numbers and load factors, which measures how full its planes are, would remain strong.

Chief executive Michael O'Leary said he remained cautious but comfortable with previous guidance for the financial year. Ryanair said in August that it expected to increase passenger numbers by about 27 per cent to 35 million.

The carrier also said yesterday that it had ordered nine Boeing 737-800 planes, worth more than £340m, for delivery in late 2007. It plans to sell five of its older 737-800 aircraft in late 2007.

Ryanair operates a fleet of 83 Boeing 737-800s and nine Boeing 737-200s.