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Ryanair's profits take a pounding as currency plunges

By Staff Reporter

Published 18/10/2016

Ryanair said fares fell more than expected in the first half of its financial year
Ryanair said fares fell more than expected in the first half of its financial year

Ryanair became the latest airline to warn over the impact of the plunging pound, as it said full-year profits would take a hit. The Irish carrier blamed an 18% fall in the value of sterling since the Brexit vote, as it cut its annual earnings forecast by 5%.

It said fares fell more than expected in the first half of its financial year - down 10% - and were now set to drop by up to 15% in the final six months, as the Brexit-hit pound takes its toll.

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

It comes after rival easyJet revealed a £90 million impact from the falling pound earlier this month, on top of at least £125 million in lost profit, after a combination of terror attacks across Europe, Egypt and Tunisia, as well as air traffic control strikes in France and political turmoil in Turkey.

Belfast Telegraph

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