Remainer Michael O’Leary takes Brexit hit in Ryanair profit alert

Ryanair issued a rare profit warning today, becoming the latest Brexit victim in the turbulent aviation industry.

The budget carrier almost halved its expectations for full-year profit growth from 12% to 7%, with profits now expected to be around €1.3 billion (£1.2 billion), largely because of sterling’s 18% plunge since the June vote to leave the EU.

But Ryanair warned that the outlook could darken further if the pound gets even weaker or fares fall more than anticipated.

Michael O’Leary’s carrier also admitted that its strategy to fill planes means passengers will enjoy reductions of up to 15% on flights this winter — up from the 10% to 12% price cut it had previously expected.

Cheaper fuel will help: it’s expected to be 3% lower. So too will the fact Ryanair is prepared for fuller planes, with its load factor — the number of passengers in its blue and yellow seats — expected to be 95%, one percentage point up on the 94% guidance. Annual traffic is forecast to be 119 million, or 12% more than last year.

But Remainer O’Leary conceded it was still “prudent now to adjust full-year guidance”. He recently criticised the Government’s ambiguity over its Brexit strategy, saying: “Whether the UK leaves the EU or stays, I couldn’t care less. The issue for us is whether we stay in the single market.”

British Airways owner IAG, easyJet and Lufthansa have cut forecasts in the wake of Brexit, terrorism and strikes. Ryanair shares were flat.