Ryanair Chief Executive Officer Michael OGLeary said he's "cautious" on prices this year, with zero visibility for the second half, which encompasses the winter season. (File Photo)
Shares of the region's biggest discount airline fell the most in seven months on Monday as it posted a 39% drop in net income for the 12 months through March and said earnings could tumble further.
Ryanair Chief Executive Officer Michael OGLeary said he's "cautious" on prices this year, with zero visibility for the second half, which encompasses the winter season.
Ryanair said first-half bookings for the peak summer period are higher but that the earnings outcome will depend on last-minute fares and whether there's any disruption from the U.K. leaving the European Union.
Thomas Cook took another blow when Sky News said a payment intermediary that works with the tour operator is seeking to extend the period for which it retains cash from bookings amid concern about the U.K. company's financial health.
As well as the bond decline the shares fell as much as 17%, following a 40% drop Friday, when analysts said the firm's debt now exceeds its value.
The company suffered a loss of 139.2 million euros at Austrian division Lauda, acquired in December, after the main airline posted net income of 1.02 billion euros, still much lower than a year earlier.
Eight airlines have already gone bust in Europe since last summer and the carrier reckons it will ultimately emerge stronger from the fare crunch. Hargreaves Lansdown analyst Laith Khalaf said in a note that "if Ryanair is feeling the pain, that applies in spades to weaker players in the market."
Ryanair forecast net income of 750 million euros to 950 million euros this year, compared with 885 million euros in fiscal 2019.