Ryanair stock falls as airline cuts profit forecast
Ryanair’s share price has fallen this morning after Europe's largest airline trimmed its full-year profit forecast.
Ryanair now sees an after-tax profit of between €1.85 billion and €1.95 billion for the year to end-March. In November, Ryanair had a forecast of €1.85 billion to €2.05 billion, as IGTV’s Angela Barnes summarises.
(AI Video Summary)
Ryanair's setbacks
Europe's largest airline, Ryanair, has recently faced some setbacks that have caused its share price to drop. The airline blames certain online travel agents for adding unauthorized charges to its flights, which led to these agents stopping the sale of Ryanair tickets. As a result, Ryanair now expects a lower profit for the next four years, predicting a range between 1.85 billion euros and 1.95 billion euros, compared to the previous forecast of 1.85 billion euros to 2.5 billion euros. Despite this reduction, Ryanair would still surpass its previous record profit of 1.45 billion euros in 2018.
Ryanair's earnings
During the third quarter, Ryanair earned 15 million euros, which fell short of the market's expectation of 49 million euros. However, despite this, the airline saw a significant increase in its number of passengers, with a 77% rise in traffic, carrying 41.4 million people. Additionally, the average fare also increased by 13% compared to the previous year.
Following the announcement of the reduced profit forecast, Ryanair's share price fell by 2.82% as traders reacted to the news. This decline highlights the impact of the revised forecast and the challenges the airline is facing due to its dispute with online travel agents.
Overall, Ryanair's financial performance has been affected by the cessation of flights by online travel agents and the subsequent reduction in its profit outlook. However, despite these challenges, the airline is still expected to achieve a record profit, although it won't reach the initially anticipated level. The increase in passenger numbers and rise in average fare indicate that there is continued demand for Ryanair's services. Despite the current obstacles, Ryanair remains a popular choice for travelers.
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