Ryanair has warned that high inflation and rising interest rates could hit demand for flights in the second half of this year.

CEO Michael O’Leary said in a video posted online that Ryanair was concerned about the impact of these ‘macroeconomic trends’.

If they begin to affect consumer spending, he said the airline would have to cut airfares, which rocketed 42% in the last quarter following heavy discounting last year.

The airline said it has seen ‘softening’ in fares for last-minute bookings in June and early July.

Ryanair profits hit €663 million for the three months to the end of June, four times higher than in the same period last year.