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Ryanair on Friday cut its annual profit forecast for a second time, blaming lower air fares caused by overcapacity in the European short-haul sector.
The Irish no-frills airline famed for promoting knock-down ticket prices also warned that its forecast could yet be cut further owing to Brexit strains.
Ryanair - Profit - Tax - 0-1 - Euros
Ryanair said profit after tax would come in at 1.0-1.1 billion euros ($1.14-$1.25 billion) in the 12 months to March.
It had cut its net forecast in October to 1.1-1.2 billion euros after suffering pan-European strike action by disgruntled cabin crew and pilots.
Indication - Passengers - Advantage - Ryanair - Fares
In an indication that passengers were taking advantage of Ryanair's lower fares, the airline added that it expected to have sold 142 million tickets during its latest financial year, up from a previous estimate of 141 million, and a gain of nine percent year-on-year.
"There is short-haul overcapacity in Europe this winter," group chief executive Michael O'Leary said in the earnings statement.
Year - Guidance - Fact - Result - Air
"While we are disappointed at this slightly lower full year guidance, the fact that it is the direct result of lower than expected second-half air fares, offset by stronger than expected traffic growth, a better than expected performance on unit costs and ancillary sales is positive for the medium term," he added.
Ryanair said winter fares were expected to have dropped by seven percent, having previously said...
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