Ryanair, Europe’s biggest low-cost airline, on Monday said it might break with its tradition of rapid expansion by distributing cash earmarked for new Boeing aircraft to shareholders instead.

It raised the possibility of the strategic shift as it announced a 46 per cent rise in second-quarter profits and kept its full-year profit forecast steady in spite of anticipating losses in the third and fourth quarters.

The Ryanair fleet is entirely made up of Boeing aircraft. As of September 30, it had 202 737-800 planes, with another 110 on order.

On Monday it said “little progress” had been made in talks with the US aerospace group over an order for 200 more aircraft for delivery between 2013 and 2016.

Michael O’Leary, Ryanair’s famously outspoken chief executive, accused Boeing of failing to pass on savings it had won from suppliers and better manufacturing processes.

He said in a statement: “We won’t continue these discussions indefinitely and have signalled to Boeing that if they are not completed before the year end, then Ryanair will end its relationship with Boeing and confirm a series of order deferrals and cancellations.”

He added: “We would prefer to grow, but if Boeing doesn’t share our vision, then I believe that Ryanair should change course before the end of this fiscal year and manage the airline over the next three years to maximise cash for distribution to shareholders.”

Ryanair does not pay dividends, preferring to reinvest in the business the cash it would otherwise have distributed to shareholders. However, Mr O’Leary in September suggested the idea of paying a one-off dividend or buying back shares.

For the quarter ended September 30, Ryanair posted a €284.8m (£257m) pre-tax profit, up from €195.7m for the same period of 2008. It said the gain was primarily due to a 42 per cent decline in fuel costs, although average fares were down 20 per cent. Passenger numbers increased 18 per cent.

Mr O’Leary said the coming winter would be a difficult one for the European airline industry. However, he remained bullish about Ryanair’s prospects relative to those of its sector peers, even though it would make a loss in the third and fourth quarters, as analysts had been expecting.

Its full-year net profit forecast remained at the lower end of a €200m to €300m range.

Ryanair’s London-listed shares fell 5 per cent to €2.80 in morning trading on Monday, extending a run of autumnal weakness.