Ryanair falls 12% after profit warning

Ryanair’s share price plunged over 12% yesterday with €1.1bn wiped off the airline’s market capitalisation on the back of it issuing its second profit warning in as many months.

Despite meeting market expectations by reporting first-half after-tax profits of €602m, for the six months to the end of September (up by 1% on a year-on-year basis); Ryanair yesterday said it now expects its full-year post-tax profits (for the 12 months to the end of next March) to be in the €500m-€520m range, or “approximately €510m”.

This would mark a 10.4% drop in full-year profits and represent Ryanair’s first annual profit decline in around five years. Currency exchange fluctuations — particularly, a weak sterling against the euro — stiffer competition, lower fares and weak consumer spending levels are eating into Ryanair’s bottom line this year.