• H1 after-tax profit 2.54 vs 2.5 bln euro analyst forecast

• Expects to recover all of last year's 7% fare decline

• Takes advantage of price dip to save on fuel hedging

• Boeing production 'transformed', O'Leary says

DUBLIN, Nov 3 (Reuters) - Ryanair RYA.I reported forecast-beating six-month post-tax profit on Monday and nudged up its passenger traffic forecast after earlier than expected Boeing BA.N deliveries and strong first-half demand.

The Irish airline, Europe's largest by passenger numbers, said it cautiously expects to recover all of last year's 7% average fare decline in its financial year to March 31, and that should lead to "reasonable" full-year net profit growth.

Ryanair expects to fly 207 million passengers to end-March, up from a previous forecast of 206 million after it received 23 new MAX 8 aircraft from Boeing. Improved deliveries enabled it to add capacity for the current quarter.

The low-cost carrier said it is confident of receiving the six remaining MAX 8 aircraft from an order that had suffered long delays by February.

"The team at Boeing have transformed the place in the last 12 months," Group Chief Executive Michael O'Leary said in an analyst presentation.

"For the first time in many years we will have a full fleet complement by the time we switch to the summer schedule...and I think that will enable strong 4% traffic growth to about 215 million."

FUEL HEDGING EXTENDED AT LOWER PRICES

Ryanair's next order is for 150 of the new MAX 10 and with Boeing expecting to receive regulatory approval for the aircraft by mid-2026, according to O'Leary, Ryanair said on Monday it would begin to accelerate pilot recruitment in advance of the first deliveries due in early 2027.

Ryanair reported a net profit of 2.54 billion euros ($2.96 billion) for the six months to end-September, which is when it typically makes most of its profit due to the northern hemisphere's busy summer holiday season.

That was up 42% from 1.8 billion euros in the same period last year and ahead of a Ryanair poll of analysts that had expected 2.5 billion euros. Average fares grew by 13% year-on-year.

Chief Financial Officer Neil Sorohan said demand was weaker into November and required "a bit" of price stimulation but that demand was up marginally during the recent school mid-term holiday with forward bookings "slightly" ahead of the prior year, including for Christmas.

After previously hedging around 85% of its fuel needs for the year to end-March at $76 per barrel, Ryanair said it took advantage of recent price dips to extend hedging for its 2027 fiscal year to cover 80% of its needs at just under $67 a barrel.

($1 = 0.8575 euros)