Ryanair Cuts FY Profit View Amid Weak Sterling Post Brexit - Quick Facts

(RTTNews) - Irish no-frills airline Ryanair Holdings Plc (RYA.L, RYAAY) Tuesday said it has reduced its full year net profit guidance by 5% to a range of 1.30 billion euros to 1.35 billion euros from a previous range of 1.375 billion euros to 1.425 billion euros.

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%.

For the full year, profits are now expected to grow by 7 percent, compared to previously expected growth of 12 percent.

Further, Ryanair confirmed that its first half fares were marginally weaker at minus 10%, compared to previously guided minus 9%. However, these lower fares will be partly offset by a better than expected cost performance.

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.

Ryanair's CEO Michael O'Leary said, "The recent sharp decline in Sterling post Brexit (which accounts for approx. 26% of Ryanair's FY17 revenues) will weaken H2 yields by slightly more than we had originally expected. 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...."

O'Leary added that the company would caution that this revised guidance remains heavily dependent upon no further weakness in H2 fares or Sterling from its current levels.

In London, Ryanair shares were trading at 11.71 euros, down 0.85 percent.