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 cannot rule out a further downgrade if Brexit causes unexpected developments.
Europe's largest low-cost carrier now expects profit after tax for its financial year to March 31 — excluding start-up losses at its Laudamotion unit — of between 1 billion euros ($1.14 billion) and 1.1 billion euros, compared to a previous estimate of 1.1 billion euros to 1.2 billion euros.
The Irish airline had originally forecast profits of 1.25 to 1.35 billion euros before October's profit warning took account of a series of strikes across Europe during the summer that hit traffic and bookings, but have since subsided.
On Friday, Ryanair lay the blame squarely on lower than expected fares in the second half of its financial year. Those fares were set to fall by 7 percent, rather than the 2 percent previously flagged, due to short-haul overcapacity in Europe, it said.