European low-cost airline Ryanair Holdings PLC issued a muted outlook for 2020 on the back of price pressures as it reported fiscal 2019 profits that fell from a year prior.
Profit attributable to equity holders of the parent declined to €885 million on an IFRS basis for fiscal 2019 that ended March 31, including exceptional losses related to the acquisition of Austrian airline Laudamotion GmbH, from €1.45 billion a year ago.
Total operating revenues rose to €7.70 billion from €7.15 billion. Fuel and oil operating expenses climbed to €2.43 billion from €1.90 billion.
For fiscal 2020, the airline expects "broadly flat" group profits in the range of €750 million to €950 million if revenue per pax rises 2% to 4%.
"Our outlook for FY20 remains cautious on pricing," the company said in a statement. Lower fares are expected to persist while ex-fuel unit costs are projected to increase by 2% due to a stronger sterling and delayed deliveries of Boeing Co.'s 737 MAX aircraft.
Ryanair postponed the delivery of five 737 MAX aircraft to the coming winter following the model's global grounding in the wake of the Ethiopian Airlines crash in March.
Shares of Ryanair were down 3.20% in London as of 1:46 p.m. London time.