Ryanair warns labour strife is starting to bite as profit slides

Labour strife is starting to weigh on Ryanair, and the conflict looks set to deepen. The discount airline posted a 20% drop in Q1 profit Monday, and warned that walkouts by trade unions, along with regional air traffic-control strikes, are making customers wary of booking trips. While the carrier was able to accommodate passengers whose flights were canceled during recent disruptions by Irish pilots, “the real impact is going to be on uncertainty in relation to the forward booking curve,” CFO Neil Sorahan said. The executive also said he’s “a little bit more pessimistic on fares” than in May after they dropped in the latest reporting period. The Irish airline has cancelled 16 flights on Tuesday ahead of looming strikes by pilots in its home market, and 600 flights Wednesday and Thursday as Spanish, Portuguese and Belgian flight attendants walk out. Germany’s Vereinigung Cockpit pilot union is also holding a vote on possible strike action, with the outcome due later this month. This summer’s disruptions mark the first major industrial action the budget carrier has seen, after it agreed to accept unionization in the face of a staffing crunch last year. The carrier kept its full-year profit outlook, but said the guidance is “heavily dependent” on fares this quarter, strikes by crew and air traffic-controllers and other wild cards such as Brexit. Fares fell 4% during the period ended June 30, and the pricing environment remains weak, Ryanair said. Hesitation on the part of customers to book is feeding into a drop in prices, just as fuel costs rise and the Irish carrier shells out for 20% pay increases already granted to pilots.<br/>