Ryanair cuts forecast
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