Ryanair profit growth to slow as terror ‘drip’ crimps fares

Ryanair forecast that earnings growth will slow this year as a spate of terror attacks combines with lower fuel prices to prompt European airlines to cut fares. Net income will increase by about 13% in the 12 months through March 2017 following a 43% surge in the previous fiscal year, the carrier said Monday. Ticket prices are set to fall 7%. Fares are on the slide as “an incessant drip of terrorist activity” weighs on demand just as the global decline in fuel costs encourages network carriers to add more seats in an effort to defend market share, Ryanair CE Michael O’Leary said. Lufthansa and IAG have already warned of excess capacity following shootings in Paris in November and March’s bombings in Brussels. O’Leary said the pace of fare declines will accelerate next winter. <br/>