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Ryanair cuts annual profits forecast after strikes
LONDON, Oct 1, 2018 (BSS/AFP) – Ryanair has cut its annual net profits
forecast by 12 percent owing to two pan-European strikes that forced it to
cancel hundreds of flights, the no-frills Irish airline said Monday.
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.
“Ryanair cannot rule out further disruptions…which may require full-year
guidance to be lowered further,” the airline said in a statement.
Ryanair’s share price was down more than seven percent 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.
Ryanair staff have been seeking higher wages and an end to the practice
whereby many have been working as independent contractors without the
benefits of staff employees.
A key complaint of workers based in countries other than Ireland is the
fact that Ryanair has been employing them under Irish legislation.
Staff say this creates huge insecurity for them, blocking access to state
benefits in their country.
While Ryanair has struck some deals with unions — last week it signed
deals with cabin crew unions in Italy to provide employment contracts under
Italian law — it has yet to reach agreement in other countries.
Also in September, Ryanair pilots across Europe staged a separate
coordinated 24-hour stoppage to push their demands for better pay and
conditions, plunging tens of thousands of passengers into transport chaos at
the peak of the busy summer season.
In July meanwhile, strikes by cockpit and cabin crew disrupted 600 flights
in Belgium, Ireland, Italy, Portugal and Spain, affecting 100,000 travellers.
“While we successfully managed five strikes by 25 percent of our Irish
pilots this summer, two recent coordinated strikes by cabin crew and pilots
across five EU countries has affected passenger numbers,” Ryanair chief
executive Michael O’Leary said in Monday’s statement.
“While we regret these disruptions, we have on both strike days operated
over 90 percent of our schedule.
“However, customer confidence, forward bookings and third-quarter fares
has been affected, most notably over the (upcoming) October school mid-terms
and Christmas, in those five countries where unnecessary strikes have been
repeated,” he added.
BSS/AFP/HR/1350