Ryanair warns of profits ’storm’

Ryanair has warned that its profits could be halved this year as fuel costs rise and as the UK pound weakens.

The warning came as the budget airline reported that net profit dropped 27% to 35m euros ($52m;

The drop was its first quarterly decline in a more than a year.

Chief executive Michael O’Leary said that the weakening profits were part of a cyclical downturn in the industry and a “perfect storm” may be lying ahead.