Ryanair logs modest profits growth, warns on Brexit

“We will pivot our growth away from United Kingdom airports and focus more on growing at our European Union airports over the next two years”, O’Leary said.

To minimise further impact, Ryanair will start to trim capacity from United Kingdom airports this winter, cutting 600,000 seats from a planned 9 million at Stansted Airport this winter, although it will not close any routes.

The warning came as Dublin-based Ryanair issued first-quarter results showing profit after tax rose to €256 million ($280.7 million) in the three months to June 30, a 4% increase compared with the same period previous year.

Ryanair has maintained its full-year profit guidance of between euro 1.37 billion and euro 1.42 billion but warned of “significant risks to the downside” for the remainder of the year from the Brexit vote. Fares were already falling as low fuel prices encouraged airlines to add flights to seek market share, while tour operators shifted planes to European routes from destinations seen as at risk of terrorism, including Egypt and Turkey. It cautioned that there would be a considerable period of political and economic uncertainty in both the United Kingdom and EU. While it said Britain doesn’t yet face route cuts, about 50 jets due for delivery this year are set to be deployed in other markets to offset an anticipated travel slump.

Today’s statement from Ryanair described the vote result as both “a surprise and a disappointment”, which probably comes as little surprise, given the company actively campaigned for Remain.

He added there could be implications for the three domestic routes if the United Kingdom is unable to negotiate access to the single market/open skies.

Ryanair has said it remains on track for its highest ever profit in the current financial year, up around 13 percent on last year. The company said that the weak pound could help to push fares lower and that UK-registered competitors would likely be hit harder than the Ireland-based Ryanair. The budget airline expects fares to fall by 8% over the first half of its financial year, and at least 10-12% in the second half.