Ryanair trims annual profit forecast after travel agents halt sales

Ryanair on Monday trimmed its profit forecast for the year to the end of March after some online travel agents suddenly stopped selling its flights in December, forcing it to cut fares to fill seats as costs per passenger inched up. Ryanair had for years accused the websites of adding illegitimate extra charges and launched a series of court cases against them, but appeared to be taken by surprise when they stopped selling the airline’s tickets. The airline, Europe’s largest by passenger numbers, forecast an after-tax profit of between E1.85b and E1.95b for its financial year to March 31. That is down from its November forecast of E1.85b and E2.05b, but would still beat its previous record of E1.45b in 2018. Ryanair shares were down 2% in early trading. The sudden halt of sales by the online travel agents increased the proportion of empty seats on flights by around 1 percentage point, forcing the airline to stimulate bookings over Christmas and New Year with fares that were “slightly lower than we’d anticipated,” CFO Neil Sorahan said in a pre-recorded presentation. Net profit for the three months to the end of December, Q3 of its financial year, was E15m, significantly lower than the E49m expected by analysts polled by the company. The higher percentage of empty seats, in addition to higher productivity pay agreed with staff, meant full-year ex-fuel unit costs were expected to rise by around E2.5, Sorahan said. The fallout from the travel agents’ move is beginning to “fizzle out,” Sorahan said, with several agents approaching the airline to secure new, more transparent deals.<br/>