Ryanair Holdings cuts its forecast for the full year by 12%

Ryanair Holdings PLC

RYA

Monday said it has reduced its forecast for the year 2019 by 12%, citing the negative effect of rising oil prices and strikes.

The low-cost airline has announced its return after tax at 1.10 billion euros to 1.20 billion euros, against 1.25 billion euros to 1.35 billion euros.

The revision follows weaker traffic and weaker prices in September, caused by two days of coordinated strikes in Germany, Holland, Belgium, Spain and Portugal, the company said.

Ryanair said second-quarter rates were down about 3%. Until last week, the company expected third-quarter rates to pick up lower yields in the second quarter. However, third quarter rates and customer confidence have since been affected by concerns about potential strikes. As a result, Ryanair has indicated that it is now guiding the prices of the second half down 2%.

The company announced that its fuel bill would increase by around € 460 million due to higher oil prices, while other costs would be affected by higher care and rehabilitation costs related to the compensation of oil. theft of the European Union.

Ryanair said it could not exclude further disturbances in the third quarter, meaning that its full-year outlook could be further reduced.

The company said it had decided to reduce its 2018 winter capacity by 1%, but added that further disturbances may require further reductions in winter deficit capacity. He said he would explore options, including unpaid leave, to minimize job losses in the cabins.

Last week, rival easyJet PLC (EZJ.LN) said it would achieve pre-tax profit for the full year in the top half of its forecast, but added a drop in revenue by head office to constant exchange rates – single-digit percentages in the first half of fiscal 2019.