Ryanair CEO foresees higher fares


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Ryanair’s bookings for the autumn mid-term and Christmas holidays are ahead of pre-COVID levels and it sees average fares rising by more than expected for the financial year to end-March, chief executive Michael O’Leary stated recently.

O’Leary told Reuters that as long as there was no adverse news flow on COVID or Ukraine, underlying air fares “will rise by a mid to high single digit figure for the full year” versus its most recent forecast for 3-4% growth.

“At the moment they (bookings) are surprisingly strong, we thought they would begin to ease off but actually forward bookings into the mid-term and into Christmas are stronger in terms of volume and pricing than they were pre-COVID,” O’Leary said in an interview.

O’Leary said the demand appeared to be supported by savings built up during the pandemic and that Ryanair does expect that customers’ disposable income will get hit by increases in interest rates and the cost of living further into the northern hemisphere winter.

“But so far everything seems to indicate that people are switching to the lowest cost airline and in all markets that’s Ryanair,” he said. Ryanair, which unlike many airlines kept its pilots and crew up-to-date with their flying hours during the pandemic to take advantage of the swift rebound, flew a record 16.9 million passengers in August and close to that again in September.

Source: Reuters

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