Budget airline Ryanair has cut its 2017 profit forecast citing the slump in the British pound.

The Irish-based carrier reports earnings in euros but does hefty business in the United Kingdom. Chief Executive Michael O'Leary says the 18 percent drop in the pound's value since Britain voted in June to leave the European Union has hurt the euro value of 26 percent of the airline's sales.

As a result, he said Tuesday, Ryanair's forecast for net profits in fiscal 2017 was being cut by 5 percent to a new range of 1.3 billion euros to 1.35 billion euros ($1.43 billion to $1.49 billion), still 7 percent better than in 2016.

Fuel costs are projected to fall 3 percent. The airline expects passenger volume to rise 12 percent to 119 million.