Ryanair posted a drop in third-quarter net profit today and warned profits may fall by half next year.
The carrier said excluding a one-off gain from the sale of aircraft, net profit in the three months to the end of December fell 27 per cent to €35 million as winter fares fell almost 5 per cent.
Ryanair stuck to its full-year forecast for a 17.5 per cent rise in the year to the end of March. It warned there was a "significant chance" profits would fall in its 2008/2009 business year.
"The European airline sector is presently facing one of these cyclical downturns, with possibility of a "perfect storm" of higher oil prices, poor consumer demand, weaker sterling and higher costs," the airline said.
The company also said it planned to spend up to €200 million buying back shares which, based on its current share price, would equate to 3 per cent of Ryanair's share capital.
Ryanair's stock has fallen 18 percent since the start of the year due to fears over the impact of rising energy costs and the company's limited fuel hedging for the year starting April 2008.