Ryanair cuts 12 percent earnings guidance for the year

DUBLIN (Reuters) – Ryanair (RYA.I) reduced its annual profit forecast by 12% on Monday and said the worst could come if recent coordinated strikes across Europe continue to affect traffic and bookings.

Europe's largest low-cost airline has faced multiple strikes since it gave in to pressure to first recognize unions in December and has intensified in recent months.

The Irish airline said it's now expecting the benefit of the exercise, excluding start-up losses from Laudamotion, to be between 1.10 and 1. , 20 billion euros, against an earlier forecast of 1.25 to 1.35 billion euros.

It added that it could not rule out further disruptions in the coming months, which could require a further decline in the forecast for the year and further reductions in its winter deficit capacity.

The shares of the airline fell by 8.6% to 11.99 euros at 07:10 GMT.

Ryanair said its second-quarter rates at end-September were down about 3% from its previous forecast for a 1% decline and said it now expects rates to be 2% lower in the second half.

To cope with lower fares, higher oil prices and strike costs, Ryanair reduced its winter capacity by 1%, removing planes from its bases in Eindhoven, Bremen and Niederrhein.

"Two co-ordinated strikes coordinated by cabin crews and pilots in five European Union countries had an impact on the number of passengers, the number of reservations and yields, as well as on the air fares for the first time. third quarter, "Ryanair chief Michael O'Leary said in a statement.

"Customer confidence, advance bookings and third quarter rates were affected, especially in the middle of the school year and at Christmas."