Ryanair cautious on Brexit developments, security in Europe

A combination of 'security events' and weak sterling saw Ryanair's full-year revenue growth slow last year, despite which the budget airline forecast a modest increase in profit growth for the year ahead.

Sales at Europe's largest airline in terms of passengers rose 2% to €6.648bn for the fiscal year ended 31 March 2017.

The Dublin-based carrier attributed that result to a series of security events at European cities last year, which were expected to continue to cloud the outlook.

"Investors should be wary of the risk of negative Brexit developments, or any repeat of last year’s security events at European cities, which could damage consumer confidence, close-in bookings, and this FY18 guidance," the company said in a statement.

A switch in charter capacity from North Africa and Turkey alongside a weaker pound after the Brexit vote also weighed on its full-year numbers, the company said.

Despite that, full-year profits before tax were ahead by 6% to €1.316bn, in-line with the company's own guidance for between €1.30bn to €1.35bn.

However, that guidance had been lowered in October from a range for between €1.375bn to €1.425bn.

Ryanair carried 120.0m passengers during the reporting period, 13% more than a year ago, which management attributed to a 13% on its average fare price to €41 and the third year of its Always Getting Better programme.

That resulted in a 94% load factor.

In parallel, total unit costs fell by 11% and by 5% when fuel was excluded.

Sterling was expected to continue exert a drag and together with continuing excess capacity in Europe was expected to drive a decline in its average fares of between 5% to 7% during fiscal year 2018.

Combined with flat ancillary revenues per customer resulting from discounting and a 1% reduction in its unit costs excluding fuel, the company forecast 8% growth in profits after tax to between €1.40 and €1.45bn.