EasyJet has outpaced Ryanair, its bitter rival, to come within 20,000 passengers of reclaiming the title of Europe's biggest no-frills carrier.

The airline carried 2.35 million passengers last month, up 25 per cent on the figure for September last year. The increase compared with the 18 per cent growth, to 2.37 million, which Ryanair reported for the month.

The difference between the two carriers' passenger numbers slid to 18,000 from more than 100,000 in August.

"September was a solid month," Ray Webster, the easyJet chief executive, saying that the increase in custom reflected network adjustments implemented during the summer. While announcing a series of new routes, including its first flights to the Republic of Ireland, Ryanair's home market, easyJet has also reduced capacity on some services and stopped flying to more expensive airports, such as Zurich.

Mr Webster confirmed that easyJet was on course to report profits growth of at least 16 per cent for the year to the end of last month, making it "one of the few European airlines to record an increase in profits this year".

The statement follows warnings from Ryanair, which has held top spot in the European low-cost airline league since overtaking easyJet in May last year, of collapses in the sector prompted by severe competition. Recent casualties in the sector have included PlanetAir, Duo and JetMagic.

Ryanair itself, which earlier this year issued its first profits warning, itself suffers a threat from the strengthening oil market, having eschewed hedging against higher fuel prices in expectation of a reversal this winter of recent gains.

EasyJet shares lost early gains to stand 0.75p lower at 125.5p in afternoon trade.

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