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| Ryanair hit by air fare battle and Brexit uncertainty | Ryanair hit by air fare battle and Brexit uncertainty |
| (32 minutes later) | |
| Ryanair has reported a sharp fall in quarterly profits as it reduced fares to drive up passenger numbers. | Ryanair has reported a sharp fall in quarterly profits as it reduced fares to drive up passenger numbers. |
| Profits fell 21% to €243m (£219m) for the three months to the end of June, as the average ticket price fell 6%. | Profits fell 21% to €243m (£219m) for the three months to the end of June, as the average ticket price fell 6%. |
| The airline was also hit by higher costs for fuel and staff. | The airline was also hit by higher costs for fuel and staff. |
| Chief executive Michael O'Leary said the two weakest markets were Germany, where they faced competition from Lufthansa-owned Air Berlin, and the UK, where there were Brexit uncertainties. | Chief executive Michael O'Leary said the two weakest markets were Germany, where they faced competition from Lufthansa-owned Air Berlin, and the UK, where there were Brexit uncertainties. |
| Mr O'Leary said that in Germany budget airline Air Berlin was "selling excess capacity at below cost prices", while in the UK, "Brexit concerns weigh negatively on consumer confidence and spending". | Mr O'Leary said that in Germany budget airline Air Berlin was "selling excess capacity at below cost prices", while in the UK, "Brexit concerns weigh negatively on consumer confidence and spending". |
| He added that "the current weak fare environment has continued into the second quarter and we expect [first half] fares to be down approximately 6%". | He added that "the current weak fare environment has continued into the second quarter and we expect [first half] fares to be down approximately 6%". |
| Ryanair said the drop in fares had been partially offset by 14% higher ancillary revenue, such as from baggage, food and other fees. | |
| "The June quarter results were not quite as bad as feared," Liberum analyst Gerald Khoo said in a note, adding that ticket revenue was "slightly light" compared with forecasts but that revenue from optional extras was "better than anticipated". | |
| Strike worries | |
| Earlier this month, the carrier said it was adjusting its schedules due to the grounding of the Boeing 737 Max family of jets. | |
| It confirmed on Monday that it expected to have 30 new Max jets in time for next summer. | It confirmed on Monday that it expected to have 30 new Max jets in time for next summer. |
| The forecast for profits after tax for the year remains unchanged at between €750m and €950m (£675m-£850m). | |
| In recent weeks the airline has been hit by the threat of strike action by pilots in the UK and Ireland and cabin crew in Portugal. | |
| Chief financial officer Niall Sorohan has said the airline is open to talks with staff. |