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12 Aug, 2022 13:14

Ryanair announces end of an era

The budget airline warns ticket prices will rise due to high cost of fuel
Ryanair announces end of an era

European lowcoster Ryanair told BBC on Thursday that the era of super-cheap air travel is over.

“I don’t think there are going to be ten-euro (about $10) flights anymore because oil prices are significantly higher,” Ryanair’s chief executive Michael O’Leary stated.

The airline’s average fare was reportedly €40 last year, but O’Leary said the price is likely to be hiked in the near future.

“We think that €40 needs to edge up towards maybe €50 over the next five years. So, the £35 average fare in the UK will rise to maybe £42 or £43,” he explained.

Ryanair is known for its low-price flash sales, but such prices are now thought to be unsustainable in the current situation, O’Leary noted.

“There’s no doubt that at the lower end of the marketplace, our really cheap promotional fares, the €1 fares, the €0.99 fares, even the €9.99 fares, I think you will not see those fares for the next number of years.”

The Ryanair boss said he expects customers to seek out lower-cost options rather than cut back on flights. “We think people will continue to fly frequently. But I think people are going to become much more price sensitive and therefore my view of life is that people will trade down in their many millions.”

Rising fuel prices have put the airline industry under strain. Just as airlines began their recovery from the Covid-19 pandemic, the sector was hit by a rapid spike in fuel costs. Experts have warned that the struggling carriers will pass on costs to travelers.

For more stories on economy & finance visit RT's business section

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