Ryanair cut its profit forecasts because of the weakness of the pound – Yahoo Finance Spain

By Conor Humphries

DUBLIN (Reuters) – Ryanair cut its forecast of annual benefits at a five per cent this Thursday, by the falling value of the pound sterling, and said that average prices could fall by up to 15 percent this winter.

Ryanair gets about a third of its revenue in british pounds and approximately 20 per cent of its costs are also denominated in british, he explained a company spokesman.

The low-cost airline, irish, Europe’s largest, said it expects a net profit for their fiscal year that goes until the 31 of march of between 1,300 and 1,350 million euros, which represents a reduction from the previous forecast of between 1.375 and 1.425 million euros.

The forecast average of 16 analysts polled by Reuters before this announcement was of 1.383 million euros.

“The main cause of this growth slightly lower than in the annual return is the fall of 18 per cent of the pound sterling after the vote on the Brexit, that will bring the average prices of the second half between a 13 and a 15 per cent,” he said in a statement its chief executive, Michael O’leary.

O’leary added that “this revised guidance remains heavily dependent on that there had not been more weakness in prices in the second semester of the pound in relation to current levels”.

The shares of Ryanair rose 1.52 percent, and were in 11,99 euros at 0824 GMT. Since the popular consultation held in June, have fallen by around 14 percentage points.

Its rival, easyJet, has already reduced its profit forecasts for the year that closed September 30, after the referendum held in the Uk in which you gained the option to leave the European Union and the subsequent collapse of the pound sterling.