Ryanair’s profits fell by nearly a third last year to €1bn (£880m) as fuel costs rose and fares fell.
Europe’s biggest discount airline added that profits might be lower this year, as fares could fall by up to 2%.
Chief executive Michael O’Leary said “artificially low prices” and “attritional fare wars” could dent profits for a year or two.
Ryanair’s average fare is €37, down 6%, although this was offset by spending on services such as hotels and car hire.
For the current financial year, the carrier said it was “cautious” on pricing and had “zero” visibility for the second half of the year.
It said that while bookings in the first half of this year were slightly ahead of last year, “fares are lower and we expect this trend will continue through 2019”.
The fuel bill is expected to rise by €460m, but the outlook will also depend on last-minute fares and any impact from Brexit.
The airline estimates that profits could range between €750m and €950m.
BBC
