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.