Ryanair changed its profit forecast due to the scandal with online traders and lower ticket prices
Ryanair will earn less than expected. Source: Pexels.
Ryanair, Europe's largest airline by passenger numbers, has lowered its profit forecast after some websites removed information about its flights. The carrier had to cut ticket fares due to the legal battle, fearing that some planes would not be filled.
The airline said it expects a profit for the year to the end of March after taxes of up to 1.95 billion euros, which is lower than the forecast of up to 2.05 billion euros. This was reported by the BBC.
The decline in profits is due to two main factors:
- The removal of Ryanair flights from some websites. Booking.com, Kiwi and Kayak suddenly removed Ryanair flights from their pages. This resulted in the airline being forced to reduce fares to fill the seats.
- Rising fuel costs. In October-December last year, Ryanair's fuel costs jumped 35% to €1.2 billion.
The low-cost airline is in conflict with online booking sites after the airline launched a lawsuit in the United States against Booking.com owner Booking Holdings and its subsidiaries, including Kayak, Agoda and Priceline.