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Ryanair profit warning

The Irish airline Ryanair, the budget carrier Europeans love to hate for its poor customer service and often extortionate "extra" costs, has issued a shock profit warning, sparking a share price plunge across Europe's airlines sector. Ryanair's shares fell 15 per cent after it said it could miss profit forecasts, blaming intense competition and falling airfares.
By · 6 Sep 2013
By ·
6 Sep 2013
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The Irish airline Ryanair, the budget carrier Europeans love to hate for its poor customer service and often extortionate "extra" costs, has issued a shock profit warning, sparking a share price plunge across Europe's airlines sector. Ryanair's shares fell 15 per cent after it said it could miss profit forecasts, blaming intense competition and falling airfares.
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Frequently Asked Questions about this Article…

Ryanair issued a shock profit warning saying it could miss profit forecasts. The market reacted sharply: Ryanair's shares fell about 15% and the announcement sparked a share price plunge across Europe’s airlines sector.

Ryanair blamed intense competition and falling airfares for the risk of missing profit forecasts, according to the company comments in the article.

Falling airfares and intense competition typically reduce the average ticket revenue airlines can charge, which can squeeze profit margins and make it harder for carriers to meet profit forecasts.

Yes. The article says Ryanair’s profit warning sparked a share price plunge across Europe’s airlines sector, indicating knock-on effects for other carriers' stock prices.

A 15% share drop is a significant market move that reflects investor concern about the company’s outlook. For everyday investors it signals higher short-term volatility and the need to review their investment case and risk tolerance.

The article notes Ryanair is known for poor customer service and extra charges. While those issues are part of the company’s public image, the immediate investor concern highlighted was the profit warning tied to competition and falling fares rather than service reputation alone.

Based on the article’s focus, investors should watch Ryanair’s updated profit guidance, any further commentary on competition and airfares, and how the wider European airlines sector is trading following the shock warning.

Everyday investors can respond by rechecking their investment plan, assessing how the news affects their portfolio exposure to airlines, staying informed on company updates about competition and fares, and considering professional advice if unsure—keeping in mind the article’s report that the warning triggered a broad sector sell-off.