Ryanair’s CEO: Era of €10 Airfares Is Over
He told BBC Radio 4 that Russia’s invasion of Ukraine has led to a significant increase in oil prices, thus, stressing that there would no longer be €10 euros flights anymore, AtoZSerwisPlus.com reports.
Ryanair’s CEO stressed that the airline’s average fare was €40 last year, or equivalent to about £34; however, he stressed that it will now increase.
“We think that €40 need 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 pointed out.
According to O’Leary, the airline is known for its low-price flash sales; however, the current prices are now thought to be unsustainable.
“There’s no doubt that at the lower end of the marketplace, our really cheap promotional fares, the €10 fares, the 99 cent fares, even the 9.99 fares, I think you will not see those fares for the next number of years,” he stressed, according to BBC.
However, the airline is not planning to hike prices across its offerings. The airline will still have millions of seats available at 19.99, 24.99 and 29.99.
In this regard, the director of JLS Consulting, John Strickland, has stressed that the news is not the beginning of a more widespread end to budget flying as “we currently know it.”
“The relative pricing level may change modestly for lead in fares, but as airlines, low-cost carriers, in particular, generate increasing revenues from ancillary sources (non-ticket), they can still use the low price to entice bookings whilst maximising these other opportunities,” he said.
The boss of Ryanair has stressed that Brexit is partly to blame for a shortage of airport workers that has led to chaos in the peak holiday season.
He urged the United Kingdom as well as the European Union to get inflation back down at about 2 per cent, stressing that otherwise, people’s income, as well as people’s wealth, would be profoundly damaged.
The spread of the Coronavirus and its new variants also led to a large number of flight cancellations as well as labour shortages which have brought additional difficulties for airlines and travellers.
Recently, the data provided by Mabrian, the travel intelligence platform, has revealed that among top airlines affected by flight cancellations in Europe include: Scandinavian Airlines, Wizz Air, Turkish Airlines, TUI Fly, Wizz UK, as well as Air Europa.
