Ryanair warns of profit downgrade following Brexit vote
Ryanair has warned it could lower its 2017 profit forecast following the UK's decision to leave the European Union.
In a trading update released to shareholders this morning the airline said that it is maintaining its forecast at the moment but warned of "significant risks" coming down the line after Brexit.
The airline is predicting further falls in its fares due to uncertainty around economic growth and consumer confidence - with an 8pc drop predicted over the next six months.
The company's profits increased by 4pc to €256m in the opening quarter of the year as its number of customers during the period rose by 11pc to 31.2 million.
Chief executive Michael O'Leary described the increase in profits as "modest".
"The absence of Easter in Q1 and on-going market volatility arising from terrorist events, and repeated ATC strikes (particularly in France) weakened fares on close-in bookings and caused almost 1,000 flight cancellations.
"We remain committed to our load factor active/yield passive strategy which is why Q1 fares fell 10pc to under €40," Mr O'Leary said.
Looking ahead Ryanair said its fuel unit costs should fall by 1pc in the year with the majority of the savings being made in the first half of the year. The airline said its fuel bill will dip by around €200m as lower euro pricing is offset by volume growth.
However, the firm said the majority of the savings made from fuel will be passed onto customers.