Ryanair warns of job cuts after strikes lead to drop in profits

RYANAIR has warned that job cuts and a reduced schedule could be on the horizon as multiple strikes blight operations and hit profits.

Almost half a million Ryanair customers were affected by cancellations in the three months to June. Walkouts by French air traffic controllers – and shortages in Britain, Germany and Greece – were primarily to blame for 2,500 grounded flights.

Strikes by Irish pilots also caused “a small proportion” of flights to be cancelled. Ryanair has recently agreed a pay deal with such staff, but is facing further “unnecessary” industrial action by cabin crew members in Spain, Portugal and Belgium.

“[This] may lead to fleet reductions at disrupted bases and job losses,” Ryanair said. “We cannot allow our customers’ flights to be unnecessarily disrupted by a tiny minority of pilots.”

First-quarter profits plunged 20pc to €319m (£284m) on a 9pc rise in revenues of €2.1bn. Michael O’leary, the chief executive, said the profit slide was a result of “lower fares, the absence of half of Easter in the quarter, higher oil prices and pilot costs”.

The figures, which did not include a €9m loss from its investment in Laudamotion, beat consensus analyst expectations of €305m. But shares fell more than 6pc as markets were spooked at softer fare guidance for the carrier’s second quarter – a 1pc rise rather than 4pc previously guided. Full-year profit guidance of between €1.25bn and €1.35bn was not adjusted.

Staff costs rose by 34pc, partly as a result of a 20pc increase in pilot pay.

Meanwhile, Ryanair’s annual fuel bill is set to rise by €430m. The increase relates to the 10pc of its fuel costs that are unhedged, as well as additional volumes required.