Ryanair blames overcapacity for latest profit warning
Shares in the Irish-based carrier fall on the news of its second cut in profit forecast
Dublin — Ryanair cut its forecast for full-year profit for the second time in three months on Friday, this time blaming lower-than-expected winter fares, and said it could not rule out a further downgrade if Brexit causes disruption. Shares in the Irish-based carrier fell on the news and also weighed on rivals such as EasyJet as Ryanair said short-haul overcapacity in Europe had led to fare cuts. Europe’s largest low-cost airline now expects profit after tax for its financial year to March 31 — excluding start-up losses at its Laudamotion unit — of between €1bn and €1.1bn,compared to a previous estimate of €1.1bn to €1.2bn. The airline had originally forecast profits of €1.25bn to €1.35bn before a profit warning in October after a series of strikes across Europe during the summer that hit traffic and bookings. Pressure on low-cost carriers CEO Michael O'Leary said pressure on low-cost carriers was likely to reshape the industry and that growing passenger numbers for the Irish carrie...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.