Ryanair Warns Pilots over Strikes but Says Profit on Track

DUBLIN (Reuters) - Ryanair (RYA.I) warned cabin crew and pilots that some of them could lose their jobs if a series of strikes continue but said it was on course to hit its annual profit target despite the disruption.

The Irish low-cost carrier, Europe's largest, is facing its worst-ever week for strikes, with over 300 of its daily 2,400 flights canceled on Wednesday and Thursday due to action by cabin crew in Spain, Portugal, Italy and Belgium.

But the airline on Monday beat analyst forecasts to post a profit of 319 million euros ($374.4 million) for the three months to June 30. While profit was down 20 percent from the same period last year, it was ahead of the average estimate in a company poll of analysts of 305 million euros.

It said growth in revenues for optional extras grew 25 percent in the quarter, helping to offset a fall of 4 percent in average fares and higher fuel and staff costs.

The airline reaffirmed its forecast for profit for the year to be between 1.25 billion euros and 1.35 billion euros, down from a record 1.45 billion in the year to March 31.

"Strike action is bad for sentiment and creates short-term risks to earnings, but should not impact Ryanair's long-term competitive position, cost leadership, financial strength or cash generation," Liberium analyst Gerald Khoo said in a note.

Ryanair's shares were down 6 percent to 14.60 euros at 0730 GMT, matching a 12-month intraday low hit in December when the airline announced plans to recognize unions. That is down almost 25 percent from an all-time high of 19.38 euros last August.

The results come after EasyJet (EZJ.L), Europe's second-biggest low-cost airline, raised its profit guidance, forecasting earnings could soar by as much as 45 percent this...