Profit warning issued by Ryanair

Airline reduces profit expectations by £88m, blaming drop in fares caused by competition during winter.

Ryanair has issued a profit warning for the second time in four months, reducing its expected annual profit by €100m (£88m). The airline said it expects profits to be between €1billion and €1.1billion.

It also predicts winter fares will fall by 7%, but it does expect the overall number of passengers to rise.

The company’s chief executive Michael O’Leary said he expects Brexit to further affect air fares and profits this year.

"There is short haul over-capacity in Europe this winter, but Ryanair continues to pursue our price passive/load factor active strategy to the benefit of our customers who are enjoying record lower air fares," said O’Leary.

"While we have reasonable visibility over forward quarter four bookings, we cannot rule out further cuts to air fares and/or slightly lower full-year guidance if there are unexpected Brexit or security developments that adversely impact yields between now and the end of March."

Earlier this month, Which? Travel magazine named Ryanair the UK’s worst short-haul airline for the sixth year running.

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