Business News
Ryanair warns that annual profits could be hit by low fares
Jul 27, 2009, 8:00 GMT
London - Irish budget airline Ryanair has given a warning that its policy of drastic price cuts to attract passengers could have a negative impact on full year profits.
The group said Monday that annual net profits were now expected at the lower end of market forecasts of between 200 million euros (285 million dollars) and 300 million euros.
Ryanair reduced fares by 13 per cent on average over the three months to June 30, which saw revenues come under pressure, although significantly lower fuel costs helped profits climb almost seven-fold.
Ryanair, which last week announced it was cutting its winter services out of London's Stansted airport by 40 per cent, recently reported first quarter net profits of 136.5 million euros.
Its revenues fell slightly, down by 0.3 per cent, to 774.7 million euros, while passenger numbers rose by 11 per cent.
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