Irish low-cost airline Ryanair announced on Friday that its profit forecast for the 2019 financial year is being lowered to 1-1.1 billion euros from previously 1.1-1.2 billion euros.
This is stated in a press release.
Behind the forecast reduction lies, among other things, lower ticket prices than expected during the winter. More specifically, Ryanair expects ticket prices to be 7 percent lower during the winter season compared to the previous forecast of 2 percent lower.
”"While we are disappointed by the slightly lower full-year forecast, the fact that it is due to lower than expected fares in the second half of the year, offset by stronger than expected traffic growth, better unit cost and ancillary sales than expected, is positive in the medium term," says Michael O'Leary, CEO of Ryanair, in a press release.
According to Michael O'Leary, there is overcapacity on short-haul routes in Europe this winter and he also predicts that the lower price environment will hit loss-making airlines.
Ryanair has a broken financial year and will present its third quarter report in early February.
Source: di.se
