Budget carrier Ryanair has cut its full-year profit forecast by 5%, blaming the impact of UK currency deterioration after the European Union referendum vote.
The airline has put its net profit outlook, for the year ending March 2017, at €1.3-1.35 billion ($1.43-1.49 billion).
Ryanair says the fall in the value of UK currency will reduce average fares in the second half by 13-15% rather than the 10-12% predicted, and weaken yields.
Chief executive Michael O’Leary says the revision is “prudent” given the “sharp” currency impact. UK currency will account for 26% of its full-year revenues.
The airline says its profit will increase at a reduced rate of 7% compared with the previous 12% estimate.
Fares in the first half, to 30 September, were “marginally” weaker than forecast, down 10%, but the airline says this decline will be partly offset by better-than-expected cost savings.
It believes full-year unit costs, outside of fuel, to fall by 3%. Passenger numbers will reach 119 million, up 12%, while load factor will outperform expectations by rising to 94%.
Source: Cirium Dashboard
