- REUTERS/Ruben Sprich
- Ryanair is cutting some winter flights and temporaily removing aircraft from bases, as labor strikes led the company to slash its full-year profit forecast by 12%.
- Ryanair trimmed its winter capacity by 1%, removing aircraft from Eindhoven in the Netherlands, and Bremen and Niederrhein in Germany. It says more disruption is possible.
- Profit forecasted for the year has fallen and is now expected to be between 1.1-1.2 billion euros (£2 billion) compared with the earlier forecast of 1.25-1.35 billion euros, a 12% drop, the Dublin-based airline said.
- The airline has lowered its fares in the third quarter, particularly for the October school mid-term holiday and Christmas.
Ryanair is cuting some winter flights and temporaily removing aircraft from bases as labor strikes led the company to report a bleak full-year profit forecast.
Ryanair, the largest low cost-carrier in Europe, pojected a 12% fall in profit due to raised oil costs and September strikes from pilots and cabin crew across Europe, the company said.
The airline said it could not rule out further disruption and another cut to forecasted profits. A reduction in winter flights is also expected.
Winter flights are often operated at a loss. Ryanair has trimmed its winter capacity by 1 percent, temporarily removing aircraft from its Eindhoven, Bremen and Niederrhein bases, and it has lowered fares.
Since recognizing unions in late 2017, strikes have escalated against Ryanair with bosses and unions making slow progress in talks. The strikes led to cancelled flights and reduced revenue, while rising oil prices also hit the airline. Profit for the year is now expected to be between 1.1-1.2 billion euros (£2 billion) compared with the earlier forecast of 1.25-1.35 billion euros, a 12% drop, the Dublin-based airline 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), bookings and yields (as we re-accommodate disrupted passengers), and forward air fares into Q3.” said Ryanair chief executive, Michael O’Leary.
Shares of Ryanair plunged 8.8% on Monday.
But the company said that most flights will continue as normal. “All affected customers have been contacted by email/SMS this morning and will be re-accommodated on other flights or refunded as they so wish,” Ryanair said.