Ryanair hit by Brexit as profit forecast cut
October 19, 2016, 12:17 am TWN
DUBLIN -- Ryanair cut its full-year profit forecast by 5 percent Tuesday due to the pound's slump since Britain voted in June to exit the EU, heaping more turbulence on a troubled sector.
"The primary cause of this slightly lower growth in full year (net) profitability is the 18-percent fall of sterling post Brexit which will reduce second half average fares," the Irish no-frills 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 the Dublin-based airline uses to price its earnings.
Ryanair said it was cutting its 2016/17 profit after tax forecast by five percent to between 1.3 billion euros and 1.35 billion euros (US$1.4 billion and US$1.5 billion).