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| Ryanair shares plunge after warning over profits | Ryanair shares plunge after warning over profits |
| (about 9 hours later) | |
| Ryanair shares have slumped 13% after the company warned that profits are likely to fall this year. | |
| It now expects to make a profit of between 500m euros (£423m; $674m) and 520m euros for the financial year ending in March, down from its previous projection of 570m euros. | It now expects to make a profit of between 500m euros (£423m; $674m) and 520m euros for the financial year ending in March, down from its previous projection of 570m euros. |
| The airline said it expected fares to fall 10% over the winter months and was grounding aircraft as a result. | The airline said it expected fares to fall 10% over the winter months and was grounding aircraft as a result. |
| Ryanair will also introduce allocated seating from February next year. | Ryanair will also introduce allocated seating from February next year. |
| Monday's profit warning means that Ryanair will report its first fall in annual profits in five years. | Monday's profit warning means that Ryanair will report its first fall in annual profits in five years. |
| It also comes just two months after the company made its first profit warning in a decade. | It also comes just two months after the company made its first profit warning in a decade. |
| Softer conditions | Softer conditions |
| Europe's biggest discount airline said that fares had been falling because of "increased price competition, softer economic conditions in Europe and the weaker euro-sterling exchange rate". | Europe's biggest discount airline said that fares had been falling because of "increased price competition, softer economic conditions in Europe and the weaker euro-sterling exchange rate". |
| "The continuing fare and yield softness means that full-year profits will be lower than previously guided," Michael O'Leary, chief executive of Ryanair, said in a statement. | "The continuing fare and yield softness means that full-year profits will be lower than previously guided," Michael O'Leary, chief executive of Ryanair, said in a statement. |
| The warning came as the airline reported a net profit of 602m euros for the six months to the end of September, a rise of just 1% from a year earlier. | The warning came as the airline reported a net profit of 602m euros for the six months to the end of September, a rise of just 1% from a year earlier. |
| It said it carried 49 million passengers during the period and generated a revenue of 3.26bn euros, up 5% from the same period last year. | It said it carried 49 million passengers during the period and generated a revenue of 3.26bn euros, up 5% from the same period last year. |
| 'Listen to customers' | 'Listen to customers' |
| Ryanair has enjoyed robust growth over the past few years as a global economic downturn saw many consumers turn to more affordable travel options. | Ryanair has enjoyed robust growth over the past few years as a global economic downturn saw many consumers turn to more affordable travel options. |
| However, the company said that "the next 12 months will see a brief pause in traffic growth". | However, the company said that "the next 12 months will see a brief pause in traffic growth". |
| Given the weak conditions in key markets and increased competition, the airline is looking to focus on improving its service in an attempt to retain customers and attract new ones. | Given the weak conditions in key markets and increased competition, the airline is looking to focus on improving its service in an attempt to retain customers and attract new ones. |
| It has announced a plan to introduce allocated seating from 1 February next year which will allow passengers to select seats on aircraft, as long as they check in more than 24 hours before departure. | It has announced a plan to introduce allocated seating from 1 February next year which will allow passengers to select seats on aircraft, as long as they check in more than 24 hours before departure. |
| The airline said the move will make "the boarding process smoother" and enable "families or other groups to ensure that they sit together". | The airline said the move will make "the boarding process smoother" and enable "families or other groups to ensure that they sit together". |
| It added that the return to allocated seating was in response to enormous demand and was "part of the airline's commitment to listen to its customers". | It added that the return to allocated seating was in response to enormous demand and was "part of the airline's commitment to listen to its customers". |
| In recent weeks, the carrier has also introduced measures such as allowing a small second carry-on bag and a 24 hour "grace period" to allow passengers to correct minor booking errors. | In recent weeks, the carrier has also introduced measures such as allowing a small second carry-on bag and a 24 hour "grace period" to allow passengers to correct minor booking errors. |