Ryanair cautioned on Monday that profits would only rise modestly in the year ahead as low oil prices help rivals to cut fares, taking the shine off its third profit upgrade in as many months for the year ending in March.
Ryanair, Europe's largest airline by passenger numbers, has increased its profit forecast for the current financial year by over 30 percent since it reported stellar half-year results three months ago, due to improvements in its much berated customer service that have boosted fares and passenger numbers.
That helped it to announce a new 400 million-euro share buyback programme on Monday but the Irish airline cautioned that it was braced for greater competition on fares in the year ahead from rivals who are already benefiting from the drop in the oil price, whereas Ryanair is locked into a higher price because of its forward buying scheme.
Its shares were down 4 percent at 9.97 euros by 0944 GMT.
Ryanair has hedged 90 percent of fuel needs for the year ending March 2016 at $92 per barrel, about double the current price after the plunge in benchmark Brent crude in recent months, meaning it will only benefit slightly from lower jet fuel costs this year.