Ryanair: cuts profit forecast with lower winter fares
(CercleFinance.com) - Ryanair cut its earnings estimates for the year to March, saying that average fares are expected to fall further this winter.
The low-cost carrier on Friday reduced its full-year profit guidance, now expecting profit after tax in a range of 1 billion-1.1 billion euros, against 1.1 billion to 1.2 billion euros previously.
This guidance excludes exceptional start-up losses in Lauda, the Irish airline said.
In its statement, Ryanair said winter fares are now expected to fall 7%, from a previous guidance of -2%.
"There is short haul over capacity in Europe this winter," Chief Executive Michael O'Leary said in the statement.
However, O'Leary believes this lower fare environment will continue to eliminate more loss-making competitors.
Ryanair said that it cannot rule out further cuts to air fares and/or slightly lower full-year guidance if there are unexpected Brexit developments for example.
Yet, the shares have limited their losses this morning, down just 1.4% at 9.9 euros.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The low-cost carrier on Friday reduced its full-year profit guidance, now expecting profit after tax in a range of 1 billion-1.1 billion euros, against 1.1 billion to 1.2 billion euros previously.
This guidance excludes exceptional start-up losses in Lauda, the Irish airline said.
In its statement, Ryanair said winter fares are now expected to fall 7%, from a previous guidance of -2%.
"There is short haul over capacity in Europe this winter," Chief Executive Michael O'Leary said in the statement.
However, O'Leary believes this lower fare environment will continue to eliminate more loss-making competitors.
Ryanair said that it cannot rule out further cuts to air fares and/or slightly lower full-year guidance if there are unexpected Brexit developments for example.
Yet, the shares have limited their losses this morning, down just 1.4% at 9.9 euros.
Copyright (c) 2019 CercleFinance.com. All rights reserved.