No-frills airline Ryanair has raised its profit guidance for the full-year to €275 million, up from its earlier forecast of attaining the lower end of a €200 million to €300 million range, as it saw a sharp decline in third-quarter losses.

The Irish airline said its losses plunged to €10.9 million during the three months to the end of December as compared with losses of €118.8 million in the year ago period.

Revenue jumped from €604.5 to settle at €612 million, representing a gain of 1 per cent.

The low cost airline said that revenue per ticket slipped 12 per cent during the final three months of last year as compared with company’s originally estimate of 20 per cent.

The company expects to see an increase in its market share this year.

Speaking on the issue, airline’s CEO Michael O'Leary said, "We expect further casualties this winter. We are increasing market share particularly where we compete with the big three high-fare flag carrier groups."

The Irish airline added that it would perform well during the running fiscal year ending March 31, helped by slashing of less-profitable routes and unprofitable winter capacity at high-cost airports like Dublin.

Ryanair further said that it expected to produce up to €1 billion of surplus cash by the end of 2013.