Ryanair: cuts profit outlook; investors shaken
(CercleFinance.com) - Irish budget airline Ryanair has cut full-year profit forecasts on Monday, due to higher oil prices and recent strikes, a warning which has sent its shares down 8%, impacting the broader sector.
For fiscal year 2018/2019, the low-cost airline cut its full-year profit guidance from a current range of 1.25 billion euros-1.35 billion euros to a new range of 1.10 billion euros-1.20 billion euros.
In the statement, the company blamed several days of pilot/cabin crew strikes in Germany, Holland, Belgium, Spain and Portugal affecting bookings and customer confidence, as well as higher re-accommodation costs arising from the strikes and higher oil prices, which it has not hedged against.
Moreover, Ryanair has said that it could not rule out further disruptions in the next months, which may require full-year guidance to be lowered further and may lead to further trimming of its loss-making winter flight offer.
Ryanair's reality check hit share prices across the airline sector, with IAG and easyJet respectively down 1.5% and 4%, while the Ryanair's stock is currently the sharpest faller in the main Irish index, dropping over 8% at 12 euros in early morning trading.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
For fiscal year 2018/2019, the low-cost airline cut its full-year profit guidance from a current range of 1.25 billion euros-1.35 billion euros to a new range of 1.10 billion euros-1.20 billion euros.
In the statement, the company blamed several days of pilot/cabin crew strikes in Germany, Holland, Belgium, Spain and Portugal affecting bookings and customer confidence, as well as higher re-accommodation costs arising from the strikes and higher oil prices, which it has not hedged against.
Moreover, Ryanair has said that it could not rule out further disruptions in the next months, which may require full-year guidance to be lowered further and may lead to further trimming of its loss-making winter flight offer.
Ryanair's reality check hit share prices across the airline sector, with IAG and easyJet respectively down 1.5% and 4%, while the Ryanair's stock is currently the sharpest faller in the main Irish index, dropping over 8% at 12 euros in early morning trading.
Copyright (c) 2018 CercleFinance.com. All rights reserved.