Ryanair has reduced its full-year profit forecast, blaming the fall in the pound after Brexit.
The Irish airline downgraded its net profit guidance by 5 per cent from €1.375bn - €1.425bn to a new range of €1.30bn - €1.35bn.
Ryanair said the “primary cause” of the drop is the 18 per cent fall of Sterling, following the UK’s vote to leave the European Union.
Ryanair CEO Michael O’Leary said the revised forecast remains heavily dependent on no further falls in fares or Sterling.
“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%,” said O’Leary.
Aside from the hit from the falling pound, Ryanair said it was performing well. It expects to carry 119 million passengers this financial year, up 12% on the previous year.
Sign up to BBT’s twice-weekly newsletter