Airlines hit FTSE after Ryanair warning

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In the aftermath of recent telecom deals activity, the equity market was left looking a little flat, with London’s FTSE 100 easing back in early trade.

The London benchmark lost 25 points, or 0.4 per cent, to 6,442.69 after the first hour as airlines were hit by a profit warning from Ireland’s Ryanair.

In Dublin, Ryanair shares were down nearly 14 per cent after Europe’s largest budget airline said that recent weakness in forward yields, due to increased competition and exchange rate factors, meant it may miss its full-year targets.

London-listed rival easyJet fell 7.3 per cent to £11.86, while IAG, the parent of British Airlines and Iberia, lost 4.3 per cent to 282.1p.

Hargreaves Lansdown, the fund manager which made strong gains on both Monday and Tuesday ahead of full-year results, was under pressure – down 3.1 per cent at 999p, despite a 28 per cent increase in pre-tax profit and a 31 per cent increase in the dividend.

Vodafone recovered its poise after being hit by profit-taking during the previous session in the wake of its long-anticipated deal to sell its stake in Verizon Wireless. Shares in the UK mobile operator are up 2 per cent at 206.5p.

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