Ryanair cuts fore­cast

The Sun (Malaysia) - - SUNBIZ -

DUBLIN: Ir­ish no-frills air­line Ryanair cut yes­ter­day its full-year net profit fore­cast by 5% ow­ing to the pound’s slump since Bri­tain voted in June to exit the Euro­pean Union (EU).

“The pri­mary cause of this slightly lower growth in full year prof­itabil­ity is the 18% fall of ster­ling post Brexit which will re­duce se­cond half av­er­age fares,” the Dublin-based air­line said in a statement.

The pound’s tum­ble is re­duc­ing the amount Ryanair earns from its key Bri­tish mar­ket once the cur­rency is con­verted into eu­ros – the unit of Ire­land and which Ryanair uses to price its earn­ings.

Ryanair said it was cut­ting its 2016/17 net profit fore­cast by 5% to be­tween € 1.3 bil­lion and € 1.35 bil­lion (RM5.86 bil­lion and RM6.28 bil­lion). Its fi­nan­cial year runs to the end of March. – AFP

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