Ryanair CEO, Michael O’Leary, has warned that the airline’s fares could increase by up to 15% over the next two years as a result of the ongoing COVID-19 pandemic. The budget airline has seen its profits plummet in recent months due to significant declines in passenger numbers and occupancy rates. In this article, we will explore the reasons behind O’Leary’s statement, and what this could mean for consumers who rely on Ryanair for affordable travel.
The CEO of Ryanair has forecasted an expected increase in traffic by 10% this year, partly due to US tourists returning to Europe after the pandemic. However, Michael O’Leary also revealed that air fares may rise between 10% and 15%, though it is unlikely to exceed 20%. This comes after the airline’s latest results showed an increase in flights by 14% in the final quarter of 2022. Inflation had also risen by over 44% in December 2022 from the previous year, but lower air fares and falling wholesale energy prices had caused the pace of inflation to drop. Despite this, Ryanair announced record after-tax profits of €211m in the Christmas season from October to December 2022. Pricing increases were seen most during peak travel periods when demand was pent up.
As the world recovers from the COVID-19 pandemic, the airline industry is facing tough times ahead. Ryanair CEO, Michael O’Leary, has indicated that his airline’s flights could become up to 15% more expensive in the coming months. This news reflects the increasing costs associated with operating airplanes in the current environment. It’s important to note that this potential price hike is not yet confirmed, but travelers should prepare themselves for the possibility of higher fares. As always, it pays to be an informed traveler, staying up-to-date on the latest news and trends in the industry. We will continue to monitor developments and bring you the latest updates. Until then, safe travels.
