RYANAIR HAS CUT its expected profit growth rate by 5%, blaming the impact of the fall in value of the pound sterling since the Brexit vote.
The budget airline had predicted a 12% rate of profit growth for this financial year, but has revised this down to 7%.
Ryanair said the reduction in the currency’s value meant profits were likely to be in the region of €1.3 billion to €1.35 billion, down from the previous estimate of €1.375 billion to €1.425 billion.
The airline had campaigned for the UK to remain in the European Union. The sterling hit a six-year low against the euro yesterday.
In a statement to the Financial Times, chief executive Michael O’Leary said the move was down to “the recent sharp decline in sterling post-Brexit”.
While higher load factors, stronger traffic growth and better cost control will help to ameliorate these weaker revenues, it is prudent now to adjust full year guidance which will rise by approximately 7% rather than our original guidance of 12%.
The airline warned that the profit projection could worsen again if the sterling weakens any further.
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