Jump to content
House Price Crash Forum
Sign in to follow this  
Sancho Panza

Ryanair Down 14%:profits May Miss Forecast

Recommended Posts

BBC 4/9/13

'Ryanair has warned that profits this year may miss its forecast.

Europe's biggest low-cost carrier says that profits may miss or be at the lower end of its range of 570m to 600m euros (£480m to £508m).

Ryanair said there had been a dip in ticket prices and booking levels for September, October and November.

Its shares plunged 14% on the news and other airline shares were hit too, with Easyjet falling 7% and British Airways owner IAG Group down 4%.

Ryanair says the weakness of European economies is partly to blame as well as price cutting by rival airlines.

In a conference call chief executive Michael O'Leary said: "We are going to respond to this by being out there first and being aggressive in fare response".

He said that Ryanair will offer its £14.99 one way fare on up to 1,000 routes in September, October and November. That is up from 600 routes over the summer.

It is also launching an advertising campaign in the Republic of Ireland and the UK.

Mr O'Leary said the weakness of the pound was hurting profits as 25% of the airline's sales are made in sterling.

"This is a surprise statement from Ryanair and comes contrary to some of the commentary from the peer group and indeed Ryanair's own commentary at its June investor days," said Donal O'Neill, analyst with Goodbody stockbrokers.

To compensate for the weak demand, Ryanair will ground 70 to 80 aircraft during the winter months, after initially expecting to ground just 50.

That should mean its annual seat capacity will be 81 million seats, still up 2-3% on last year.'

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 404 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.