Ryanair Holdings PLC RYANAIR REDUCES FY17 GUIDANCE BY 5% (7600M)
18 October 2016 - 5:00PM
UK Regulatory
TIDMRYA
RNS Number : 7600M
Ryanair Holdings PLC
18 October 2016
RYANAIR REDUCES FY17 GUIDANCE BY 5% to EUR1.30BN to EUR1.35BN
RANGE
FULL YEAR PROFITS EXPECTED TO GROW BY 7% INSTEAD OF PREVIOUSLY
GUIDED 12%
Ryanair, Europe's favourite airline today (Tues, October 18)
reduced its full year net profit guidance by 5% from a previous
range of EUR1.375bn - EUR1.425bn to a new range of EUR1.30bn -
EUR1.35bn. The primary cause of this slightly lower growth in full
year profitability is the 18% fall of Sterling post Brexit which
will reduce H2 average fares by between 13% to 15% as opposed to
the previously guided 10% to 12%.
Ryanair confirmed that its H1 fares were marginally weaker at
-10% compared to previously guided -9%. However, these lower fares
will be partly offset by a better than expected cost performance.
Ryanair now expects full year ex-fuel unit costs to decline by 3%
compared to previously guided 1%. Ryanair also expects full year
load factor to be 1% better than guided at 94%, and now expects
that full year traffic will increase to 119m, which is 12% growth
on last year's 106m customers.
Ryanair's CEO Michael O'Leary said:
"The recent sharp decline in Sterling post Brexit (which
accounts for approx. 26% of Ryanair's FY17 revenues) will weaken H2
yields by slightly more than we had originally expected. While
higher load factors, stronger traffic growth and better cost
control will help to ameliorate these weaker revenues, it is
prudent now to adjust full year guidance which will rise by approx.
7% (over FY 2016) rather than our original guidance of 12%. This
decline is primarily due to the impact of weaker Sterling on our H2
fares.
We would caution that this revised guidance remains heavily
dependent upon no further weakness in H2 fares (-13% to -15%) or
Sterling from its current levels (EUR1 = GBP0.9050). As Ryanair
will continue to be load factor active and price passive throughout
the winter season at these low prices, there has never been a
better time for customers to book or fly with Ryanair."
ENDS
Note - "This announcement includes inside information."
For further information
please contact:
Neil Sorahan Piaras Kelly
Ryanair Holdings plc Edelman Ireland
Tel: +353-1-9451212 Tel: +353-1-6789333
www.ryanair.com ryanair@edelman.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCDDLFFQBFEFBQ
(END) Dow Jones Newswires
October 18, 2016 02:00 ET (06:00 GMT)
Ryanair (LSE:RYA)
Historical Stock Chart
From Apr 2024 to May 2024
Ryanair (LSE:RYA)
Historical Stock Chart
From May 2023 to May 2024