4th Nov 2013 07:52
LONDON (Alliance News) - Ryanair Holdings PLC Monday cut its earnings guidance for the second time in as many months, as it warned that pressure of fares was continuing.
Europe's largest low-cost carrier reported higher revenues and profits for the first half of its fiscal year, but said it now expects its full-year profit to be between EUR500 million and EUR520 million, down from previous guidance for between EUR570 million and EUR600 million. That guidance was set at the start of September, when the airline first warned of pressure on fares.
Monday, the Irish carrier said it expects fares to be down 9% in its fiscal third quarter and by up to 10% in the fourth quarter.
The airline reported a net profit of EUR601.9 million for the six months to September 30, up from EUR595.6 million a year earlier, as revenues rose to EUR3.25 billion, from EUR3.11 billion. Passenger numbers were up 2% to 49 million in the period.
Ryanair said it would respond to the fares pressure by cutting its own fares, while stripping out more costs. Chief Executive Michael O'Leary said the lower costs would come from a combination of more fuel-efficient aircraft, lower fuel costs and lower airport charges through recently announced deals with the likes of Stansted.
Costs were up 3% in the first half of the year, mainly due to a 7% rise in Fuel costs.
By Steve McGrath; [email protected]; @SteveMcGrath1
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