Ryanair Pulls Winter Capacity and Warns Rivals May Struggle to Survive

Ryanair is cutting its traffic target for the financial year by 2 million passengers as the carrier limits its exposure to soaring unhedged fuel prices. Europe’s largest low-cost airline said Wednesday it now expects to carry 214 million passengers, down from its previous target of 216 million. The reduction is concentrated in the November-to-March period. Despite the winter warning, the company has continued to grow strongly this summer. Ryanair carried 22.2 million passengers in August, up 6% from 21 million a year earlier, with its load factor – an industry metric for average seat occupancy – unchanged at 96%. More than 120,500 flights operated during the month, despite 400 being canceled due to eruptions at Sicily’s Mount Etna. For the 12 months through August, Ryanair carried 214.4 million passengers, up 5% from 203.6 million – but the economics of the coming winter look far less attractive. Minimizing Fuel Exposure