Budget airline Ryanair has warned its annual profits could be lower than expected.
The company revealed it is likely to make a profit of between 500 million euros (£423 million) and 520 million euros for the 12 months to the end of March 2014.
In a statement, chief executive of the firm Michael O'Leary stated that fares are also likely to drop by about ten per cent, while allocated seating will be launching by the airline from February.
"The continuing fare and yield softness means that full year profits will be lower than previously guided," he said.
Ryanair added that fares are falling as a result of "increased price competition, softer economic conditions in Europe and the weaker euro-sterling exchange rate".
The share price of the firm has taken a hit this morning (November 4th) on the back of the announcement. At 08:32 GMT, its stocks were down 11.5 per cent for the day.
With the share price dropping to 5.39 in early trading, stocks have now hit a 52-week low for the company following the profits warning.
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