Irish no-frills airline Ryanair on Monday slashed its annual profits forecast for the second time since September, blaming the cut on lower fares.
The Dublin-based carrier expects annual profit after tax of not more than 520 million euros (US$701 million), it said in a results statement, which compared with a forecast at the lower end of a 570-600 million euros range given just two months ago.
"We now expect the full year outturn to be between 500 million euros to 520 million euros due entirely to this lower fare environment," Ryanair said in the statement. Ryanair's fiscal year runs to the end of March.
Ryanair added that net profit rose 1.0 per cent to 602 million euros in the group's first half, or in the six months to the end of September, as traffic rose 2.0 percent to 49 million passengers.
"We are pleased to report slightly increased first half profits, particularly against a backdrop of softer fares this summer," Ryanair chief executive Michael O'Leary said in the statement.
Ryanair added that from February it will move to fully-allocated seating on all flights, ensuring that families sit together.
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