Ryanair lowers full year profit guidance
Low-fares airline Ryanair has lowered its full year profit guidance from the €1.1bn - €1.2bn range to between €1bn - €1.1bn.
This is due to lower winter air fares, which are expected to fall 7pc.
The airline had previously expected fares would fall 2pc.
However Ryanair added that it had experienced stronger traffic growth, up 9pc to 142 million customers.
"While we are disappointed at this slightly lower full year guidance, the fact that it is the direct result of lower than expected H2 air fares, offset by stronger than expected traffic growth, a better than expected performance on unit cost and ancillary sales is positive for the medium term," Michael O’Leary, CEO of Ryanair, said.
Mr O’Leary added that he believes there is short haul over capacity in Europe this winter.
"We believe this lower fare environment will continue to shake out more loss making competitors, with Wow, Flybe, and reportedly Germania for example, all currently for sale," he continued.
The airline said while it has "reasonable visibility" over forward quarter four bookings, it cannot rule out further cuts to air fares and/or slightly lower full year guidance if there are unexpected Brexit or security developments which adversely impact yields between now and the end of March.
The guidance excludes exceptional start-up losses in Lauda, which have been cut from €150m to €140m on the back of better than expected unit cost performance during the winter period.