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| Ryanair warns on profits as strikes hit income | Ryanair warns on profits as strikes hit income |
| (35 minutes later) | |
| Ryanair has warned investors its full-year profits will be lower than expected, partly due to the recent wave of industrial action. | Ryanair has warned investors its full-year profits will be lower than expected, partly due to the recent wave of industrial action. |
| The airline said its profits would be 12% lower than the €1.25-1.35bn (£1.11-1.2bn) previously forecast, and it now expects profits of between €1.1-1.2bn. | The airline said its profits would be 12% lower than the €1.25-1.35bn (£1.11-1.2bn) previously forecast, and it now expects profits of between €1.1-1.2bn. |
| Ryanair said this was due to higher oil prices, higher costs associated with EU flight compensation rules, and weaker fares due to the recent strikes. | Ryanair said this was due to higher oil prices, higher costs associated with EU flight compensation rules, and weaker fares due to the recent strikes. |
| It warned it may lower forecasts again. | It warned it may lower forecasts again. |
| Shares in the airline opened down 8%. | |
| Last week, cabin crew and pilots in Germany, Holland, Belgium, Spain and Portugal took industrial action which led to a number of flight cancellations. | |
| Bigger fuel bill | |
| Ryanair said fares for the third quarter of the year were lower as forward bookings, particularly for the October school mid-terms and Christmas, were being affected by fear of further strikes. | Ryanair said fares for the third quarter of the year were lower as forward bookings, particularly for the October school mid-terms and Christmas, were being affected by fear of further strikes. |
| The carrier said it had not hedged its fuel bill against prices rises, and this meant it would be paying 10% more for its fuel thanks to the recent rise in the global price. | The carrier said it had not hedged its fuel bill against prices rises, and this meant it would be paying 10% more for its fuel thanks to the recent rise in the global price. |
| Ryanair chief executive Michael O'Leary said: "While we successfully managed five strikes by 25% of our Irish pilots this summer, two recent co-ordinated strikes by cabin crew and pilots across five EU countries has affected passenger numbers (through flight cancellations). | |
| "Customer confidence, forward bookings and [third quarter] fares have been affected, most notably over the October school mid-terms and Christmas, in those five countries where unnecessary strikes have been repeated." | |
| The airline is making cuts to some routes and closing some of its bases. | |
| Its four-aircraft Eindhoven base in the Netherlands will close, although most routes to and from Eindhoven will continue on overseas-based aircraft. It is taking the same action at its two-aircraft Bremen base in Germany and is making cuts at its Niederrhein base. | |
| Ryanair says all affected customers have been contacted by email or text message, and will be re-accommodated on other flights or refunded as they wish. |