Low-cost carrier Ryanair has lowered is full year outlook. The lower guidance is an effect of the outcome of the Brexit vote.
Ryanair commits to capacity growth
The carrier, led by O’Leary, still expects earnings growth of 7%, but this is vastly lower than the 12% guidance it released earlier this year. The lowered guidance is caused by the drop of the sterling pound, which has dropped 18% so far. The direct effect is that earninigs from flight operations have dropped considerably.
Despite the lower guidance, the Irish low cost carrier still expects a profit of €1.3-1.35 billion. Since the brexit vote airlines with significant exporesure have lost a third of their market capitalization. Rynair lost about 10%, being one of the better performers. The carrier has about 26% of revenue exposure to the sterling pound.
A support to investors was the promise that Ryanair would keep expanding capacity.