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Business

A 'no frills' Brexit profit warning from Ryanair

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Opening sequence

Business

A 'no frills' Brexit profit warning from Ryanair

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COMING UP:A 'no frills' Brexit profit warning from Ryanair

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Transcript

00:00:01
>> Ryanair telling investors a big fat told you so. The low cost carrier, which campaigned for the UK to stay in the EU, blaming Brexit for a profit warning on Tuesday. The airline cutting its forecast for full year profit by 5% due to a slump in sterling. Conor Humphries is Reuters Ireland correspondent.
00:00:20
>> It had been holding out. It was one of a very few large airlines in Europe which had managed to avoid a profit warring. And what it's saying today is that it was basically just down to sterling.>> The value of European airlines have dropped almost a third in the five months since Britain's Brexit vote.
00:00:39
Ryanair, the latest in a long line of carriers to warn of tough trading conditions. IAG, easyJet, and Germany's Lufthansa, have all issued warnings. Brexit hitting the industry just as low fuel prices create a flood of supply in Europe.>> Because of the fall in the oil price, the higher cost competitors haven't pulled that capacity out.
00:01:02
So everybody's putting more planes into the sky. There's more tickets, and everybody has to discount the tickets to sell them. And there doesn't seem to be any sign of that slowing up.>> Ryanair, though, doing better than most. Its share price falling 14% since the Brexit vote, versus a 40% drop for easyJet.
00:01:25
Investors taking heart from the Irish carrier's promise to sell more tickets at cheaper prices this winter. But they are fully aware of CEO Michael O'Leary's warnings that the new forecast is, quote, heavily dependent on no further sterling weakness.