Budget carrier Ryanair is expecting a slight improvement to the fare situation over the second half, while other contributing elements have led the airline to narrow its full-year net profit forecast to €800-900 million ($890 million to $1 billion).
It had previously put the outlook in the €750-950 million range, down from its 2018-19 full year profit of just over €1 billion.
Ryanair has turned in flat half-year net profits of $1.15 billion and it remains "cautious" of the second half.
"We try to avoid the unreliable optimism of some competitors," it states.
Fares over the first half were 5% lower, which Ryanair attributes to weak UK demand and overcapacity in Austria and Germany.
Although it predicts full-year passenger numbers will rise by 8% to 153 million, with a "slightly better" fare environment than the previous winter, the situation "remains sensitive".
Ryanair expects its fuel expenditure to rise by €450 million while unit costs, outside of fuel, will increase by 2%.
It also estimates that losses from its Austrian operation Lauda will be "higher than originally expected" owing to the overcapacity in the region.
Lauda's pricing in Austria and Germany remains "difficult", says Ryanair, and its revenue-per-passenger figures are still behind targets.
The airline is aiming to take advantage of the collapse of Thomas Cook Group and Adria Airways to recruit Airbus A320 crews and expand its fleet of 23 A320s to 38 for summer 2020. Ryanair says the carrier will benefit from "low cost" leases of A320s.
Lauda will remain loss-making in the current fiscal year 2019-20, adds Ryanair, but strong traffic growth and lower costs will "push it towards break-even" for 2020-21.
