Ryanair (FR, Dublin International) has lowered its annual net profit guidance for the financial year 2019 by 12% from an earlier estimate of EUR1.25-1.35 billion euros (USD1.45-1.56 billion) to EUR1.1-1.2 billion euros (USD1.27-1.39 million) due to a higher cost environment, mostly related to labour disputes and strikes at the LCC. The guidance excludes LaudaMotion (Vienna), which alone is projected to lose EUR150 million euros (USD174 million) this year.

The Irish carrier said that it would respond to the growing cost pressures by cutting capacity in the winter season.

"We have decided to trim our winter 2018 capacity (by 1%) in response to this lower fare, higher oil, and higher EU261 [compensation] cost environment," Ryanair said in a statement.

As previously reported, the cuts would entail closures of Eindhoven and Bremen Hans Koschnick bases, as well as a reduction in the number of aircraft based out of Düsseldorf Weeze.

Meanwhile, rival easyJet (London Luton) said it has also been negatively affected by the high number of ATC strikes in Europe, causing a higher rate of cancellations. However, easyJet believes it would not cause it to underperform financially this year.