Ryanair has said its full-year profits will be lower than expected because of the sharp drop in the value of the pound since the Brexit vote in June.
The budget airline said an 18% fall in sterling since the referendum was the main reason it was downgrading its expectations for full-year profit growth, from 12% to to 7%.
Profits are now expected to be between €1.3bn (£900m) and €1.35bn. The Dublin-based company warned, however, that the outlook for profits would worsen in the event of a further drop in the pound or weakness in ticket prices.
Fares in the second half of the year are expected to fall by 13-15%, more than the 10-12% previously expected.
Michael O’Leary, the chief executive, said lower fares would be partially offset by cost savings, with costs expected to fall by 3% in the full year, more than the 1% given in previous guidance.
“The recent sharp decline in sterling will weaken second-half yields by slightly more than we had originally expected,” he said.
O’Leary is one of several senior business figures to criticise the government in recent weeks for a lack of clarity on its Brexit strategy.
“Whether the UK leaves the EU or stays, I couldn’t care less. The issue for us is whether we stay in the single market,” he said in September.
