Ryanair warns on profits, signals job cuts

LONDON: Ryanair slashed its profits forecast on Monday and signalled job losses in the Netherlands and Germany, as the Irish no-frills airline revealed the fallout of pan-European strikes by its disgruntled staff.
The Dublin-based carrier cut its annual net profits forecast by 12 per cent owing to recent walkouts by pilots and cabin crew that has forced it to cancel hundreds of flights over the summer peak season.
Ryanair lowered its estimate for annual profits after tax to 1.10-1.20 billion euros ($1.27-$1.39 billion) from a range of 1.25-1.35 billion euros for its financial year ending next March.
The airline posted net profit of 1.45 billion euros in 2017-18.
“Ryanair cannot rule out further disruptions… which may require full-year guidance to be lowered further,” the airline said in a statement.
It added that from November 5, it would leave eight aircraft on the tarmac, equivalent to a 1.0-per cent reduction in its winter capacity.
All four aircraft will be taken out of its Eindhoven base in the Netherlands, while the only two planes based in Bremen, Germany, will also be removed from action.
Two out of five aircraft stationed in Niederrhein, Germany, will also be grounded. “We will… now consult with our pilots and cabin crew at these three bases to minimise job losses,” Ryanair said.
“We expect to offer our pilots vacancies at other Ryanair bases but, as we have a large surplus of winter cabin crew, we will explore unpaid leave and other options to minimise cabin crew job losses.” Ryanair’s share price was down more than seven per cent to 12.16 euros on the news.
The profit warnings come three days after cabin crew walked out in Germany, Belgium, Italy, the Netherlands, Portugal and Spain — and after some pilots’ unions also went on strike. — AFP