DUBLIN – The pound is plummeting and it’s taking Ryanair down with it.
The popular low-cost airline said Tuesday that its full year profit will be 5% lower than previously expected, reports CNN Money. CEO Michael O’Leary, who campaigned for Britain to remain in the European Union, attributed the decline to the low value of the pound.
Although Ryanair books its profits in euros, more than a quarter of its revenues are made in pounds. Since the U.K. voted to leave the EU in June, the pound has lost roughly 15% against the euro and 19% against the U.S. dollar.
Ryanair was one of a handful of carriers that lobbied against Brexit, saying that leaving the EU would lead to higher fares. After the vote, the airline said it would “pivot its growth away from U.K. airports” and focus more on growing at its European airports over the next couple of years.
Low-cost competitor easyJet reports similar troubles. Earlier this month, the airline told investors that its annual profit will fall by more than 25% and that the weaker pound is increasing the cost of buying jet fuel.