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| Pound sterling slide sees Ryanair cut its earnings forecast for 2017 | Pound sterling slide sees Ryanair cut its earnings forecast for 2017 |
| (35 minutes later) | |
| Ryanair has cut its forecast for full-year profits, blaming the sharp drop in the value of the pound after the UK voted to leave the EU. | Ryanair has cut its forecast for full-year profits, blaming the sharp drop in the value of the pound after the UK voted to leave the EU. |
| Sterling has lost almost a fifth of its value against the dollar since the referendum in June and is the worst performing currency in the world this year. It has continued to face pressure since a so-called flash crash two weeks ago saw it take a 6 per cent hit in two minutes. | Sterling has lost almost a fifth of its value against the dollar since the referendum in June and is the worst performing currency in the world this year. It has continued to face pressure since a so-called flash crash two weeks ago saw it take a 6 per cent hit in two minutes. |
| The pound also hit a new six-year low against the euro on Monday. | The pound also hit a new six-year low against the euro on Monday. |
| Ryanair, cut its profit forecast for the year by 5 per cent down on its previous guidance to €1.3 billion (1.17bn) - €1.35 billion (£1.22bn) range. | |
| Michael O’Leary, the chief executive of Ryanair and a vocal advocate for the Remain campaign in the run-up to the referendum, cautioned that the new guidance was conditional on the pound remaining at current levels. | |
| He said: “We would caution that this revised guidance remains heavily dependent upon no further weakness in H2 fares (-13 percent to -15 percent) or sterling from its current levels.” | He said: “We would caution that this revised guidance remains heavily dependent upon no further weakness in H2 fares (-13 percent to -15 percent) or sterling from its current levels.” |
| Aside from the hit from the falling pound, Ryanair said it was performing well. | Aside from the hit from the falling pound, Ryanair said it was performing well. |
| The company expects to carry 119 million passengers this financial year, up 12 per cent on the previous year. | |
| Airlines are facing a slew of pressures, from terror attacks in Sharm el-Sheikh, Paris and Brussels, as well as more recent events in Nice and Turkey, which put people off travelling abroad. | Airlines are facing a slew of pressures, from terror attacks in Sharm el-Sheikh, Paris and Brussels, as well as more recent events in Nice and Turkey, which put people off travelling abroad. |
| Currency and consumer issues affecting Brexit add to this stress. | Currency and consumer issues affecting Brexit add to this stress. |
| Earlier this month, rival Easyjet warned that the weakened pound would cost it £90 million in the current financial year. | Earlier this month, rival Easyjet warned that the weakened pound would cost it £90 million in the current financial year. |
| It blamed the fall in the value of the pound, which was making jet fuel more expensive. | It blamed the fall in the value of the pound, which was making jet fuel more expensive. |
| Carolyn McCall, EasyJet chief executive, said the airline was facing “one of the most difficult period in years. | Carolyn McCall, EasyJet chief executive, said the airline was facing “one of the most difficult period in years. |