Brexit spread over Ryanair profit forecast

Ryanair cut its full-year profit forecast by 5% Tuesday, lower than previously expected, due to the pound's slump since Britain voted in June to exit the EU, heaping more turbulence on a troubled sector.

The Ireland-based company now expects full-year earnings of between €1.30 billion (£1.17 billion) and €1.35 billion (£1.22 billion), down from the previous range of €1.38 billion (£1.24 billion) to €1.43 billion (£1.28 billion).
The company attributed the revision in outlook primary to the 18% fall of Sterling post Brexit which will reduce second-half average fares by between 13% to 15% as opposed to the previously guided 10% to 12%.

Ryanair now expects full year ex-fuel unit costs to decline by 3% compared to previously guided 1%. Ryanair also expects full year load factor to be 1% better than guided at 94%, and now expects that full year traffic will increase to 119m, which is 12% growth on last year's 106m customers.

Chief executive Michael O'Leary said: "While higher load factors, stronger traffic growth and better cost control will help to ameliorate these weaker revenues, it is prudent now to adjust full year guidance which will rise by approx 7% (over FY 2016) rather than our original guidance of 12%.

Ryanair was named Europe's most popular airline in terms of the number of passengers by Air Transport Association in July.