Budget airline Ryanair cuts its profits prediction by 5 per cent after pound falls

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The Irish shipper blamed an 18 per cent fall in the value of sterling since the Brexit ballot as it cut its annual earnings forecast by 5 per cent.

It said fares fell sundry than expected in the first half of its financial year – down 10 per cent – and were now set to sink by up to 15 per cent in the final six months as the Brexit-hit pound takes its tolling.

Ryanair now expects full-year earnings of between €1.30billion (£1.17billion) and €1.35billion (£1.22billion), down from the antecedent to range of €1.38billion (£1.24billion) to €1.43billion (£1.28billion).

It comes after contend with easyJet revealed a £90million im ct from the falling a sting earlier this month, on top of at least £125million in lost profit after a league of terror attacks across Europe, Egypt and Tunisia as well as air traffic in check strikes in France and political turmoil in Turkey.

Ryanair and easyJet be dressed also been slashing fares to try to encourage people to use their worship army.

Ryanair said lower costs across the group were ration offset the im ct of the pound and are now set to fall by 3 per cent excluding fuel all through its full year.

Its lower fares also appear to be boosting sales as the set edged up the full-year forecast for its load factor – a key measure of how well it fattens its planes – to 94 per cent and said it now expected to carry 119 million voyagers, up 12 per cent year on year.

Chief executive Michael O’Leary averred: “The recent sharp decline in sterling post-Brexit – which accounts for around 26 per cent of Ryanair’s full-year revenues – will weaken second-half succumbs by slightly more than we had originally expected.

“While higher overwhelm factors, stronger traffic growth and better cost control settle upon help to ameliorate these weaker revenues, it is prudent now to adjust full-year advice.”

Its expected earnings will still mark a 7 per cent rise on the preceding year, although this is sharply lower than the 12 per cent hike it had once pencilled in.

But it cautioned that forecasts could be lowered again if the a sting and fares fell further.

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