Ryanair issues fresh profit-warning; blames lower fares

Ryanair issues fresh profit-warning; blames lower fares

FILE PHOTO: A Ryanair Boeing 737 plane takes off from Palma de Mallorca airport in Palma de Mallorca
FILE PHOTO: A Ryanair Boeing 737-800 plane takes off from Palma de Mallorca airport in Palma de Mallorca, Spain, July 28, 2018. REUTERS/Paul Hanna/File Photo

LONDON: Ryanair on Friday (Jan 18) cut its annual profits forecast for a second time, blaming the latest move on lower airfares caused by overcapacity after already reducing earnings expectations because of strikes.

The Irish no-frills airline meanwhile warned that its annual profits forecast could yet be cut further owing to Brexit.

Ryanair said profit after tax would come in at 1.0-1.1 billion euros (US$1.14-US$1.25 billion) in the 12 months to the end of March. It had already cut its forecast in October to 1.1-1.2 billion euros.

Ryanair said winter fares were expected to have dropped by 7 per cent, having previously said they would fall 2 per cent.

And it warned that its annual results forecast could yet be cut further.

"While we have reasonable visibility over forward fourth-quarter bookings, we cannot rule out further cuts to air fares and/or slightly lower full year guidance if there are unexpected Brexit or security developments," chief executive Michael O'Leary said in a statement.

Source: AFP/aa

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