Ryanair to axe UK flights as it plans to cash in on Brexit

RYANAIR is to scale back investment and axe flights in the UK due to the uncertainty surrounding Brexit.

The Irish airline, which campaigned for Britain to remain in the European Union, said it would grow its business away from UK airports.

It cautioned that there would be a considerable period of political and economic uncertainty in both the UK and EU.

Chief executive Michael O’Leary warned: ‘This uncertainty will be damaging to economic growth and consumer confidence.

‘This winter we will cut capacity and frequency on many London Stansted routes, and focus more on growing at our EU airports over the next two years.’

Its two main UK rivals, British Airways owner IAG and easyJet, both issued profit warnings in recent weeks.

Last week easyJet took the unusual step of refusing to predict future profit because of the turmoil.

EasyJet shares have lost a third of their value since the referendum because it will need a special licence to operate in Europe after Brexit.

It is in talks to get an ‘air operator certificate’ and may need to move part of its business abroad to continue to operate.

In an opportunistic move O’Leary signalled he is looking to capitalise on any woes that may hit easyJet or IAG, which also owns Spain’s Iberia and Vueling.

‘There may also be some opportunities if our UK registered competitors are no longer permitted to operate routes within the EU, or must divest their majority ownership of EU registered airlines,’ he said.

O’Leary was embarrassed when he launched a sale to celebrate Britain remaining in the EU on the eve of the referendum result and was forced to say: ‘It’s a good job we’re better at running an airline than political campaigns.’ Ryanair is dependent on Britain for around a quarter of its revenue, compared to around half for easyJet. Yesterday, the airline said first quarter profit rose 4pc to £214m, driven by an 11pc increase in passenger numbers to 31m.

The fall in the price of fuel meant costs fell 9pc. Ryanair also signalled a new era of low prices for passengers.

Average fares will be down 8pc in the six months to the end of September compared with an earlier forecast for a fall of up to 7pc. Fares were 10pc lower in the three months to the end of June.

Shares in the airline rose 5.8pc, or 0.63cents to €11.53.

O’Leary said the timing of Easter this year, terror attacks in Europe and strikes meant fares had to be cut to boost sales – almost 1,000 flights were cancelled.

The strikes also affected punctuality, which fell from 91pc to 87pc over the quarter.

Ryanair also blamed this on ‘thunder storms’ and Britain’s air traffic controllers for ‘mismanaging its staffing rosters’ which caused delays at Stansted.

The firm remains on track for a record annual profit, up 13pc to at least £1.1bn.