Ryanair warns on profits as strikes hit income

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Reuters

Ryanair has warned investors its full-year profits will be lower than expected, partly due to the recent wave of industrial action.

The airline said its profits would be 12% lower than the €1.25-1.35bn (£1.2-1.11bn) previously forecast, and it now expects profits of between €1.1-1.2bn.

Ryanair said this was due to higher oil prices, higher costs associated with EU flight compensation rules, and weaker fares due to the recent strikes.

It warned it may lower forecasts again.

Last month, cabin crew and pilots in Germany, Holland, Belgium, Spain and Portugal took industrial action which led to a number of flight cancellations.

Ryanair said fares for the third quarter of the year were lower as forward bookings, particularly for the October school mid-terms and Christmas, were being affected by fear of further strikes.

The carrier said it had not hedged its fuel bill against prices rises, and this meant it would be paying 10% more for its fuel thanks to the recent rise in the global price.