Ryanair falling short of profit target
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Ryanair blamed competition and the weak European economy on news that it is falling short of reaching its full profit forecast this year.
Shares in the low-cost carrier fell 15% on the announcement that its full-year net profit will be at the bottom end of its prediction at EUR570 million (GBP480m) instead of the top end at EUR600m (GBP505m).
According to the The Guardian, Ryanair said it has seen a dip in forward fare prices and yields in September through to November as more competitors come onboard in the UK, Scandinavia, Spain and Ireland.
Economic struggles in the eurozone and the weak sterling were also blamed for the estimate.
The airline is now expected to reduce its capacity by 500,000 seats to 81 million and introduce “aggressive seat sales” in the affected markets.
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