Irish low-cost carrier Ryanair’s airfares will increase by 5 to 10 percent in the summer of 2022 due to high inflation. This was stated today in Lisbon by the CEO of the airline, Michael O’Leary, quoted by France Press.
“I think that this summer ticket prices will increase by 5 to 10 percent compared to the past in an international context,” he said at a press conference.
Ryanair foresees “strong demand” in the summer thanks mainly to the Asian market following the lifting of health restrictions in China and US customers benefiting from a strong dollar, he added.
The Irish low-cost carrier today announced a net profit of €211 million in the shifted third quarter of the 2022/2023 financial year due to a surge in demand mainly for the year-end holidays, compared to a loss of €96 million the previous year.
The airline also announced 19 new destinations to the Portuguese cities of Faro and Porto, including Barcelona, Rome and Toulouse, added BTA. Ryanair, which has a total of 164 destinations from Portugal, said it could not increase the number from Lisbon due to a lack of available departure slots, airport congestion and rising airport charges.
According to O’Leary, Europe is entering an “inevitable” post-pandemic period of consolidation among carriers fighting for positions in a highly competitive environment, Reuters reported.
Many of Europe’s “legacy airlines” are struggling to compete with low-cost carriers and their lackluster performance could be greatly improved through mergers, analysts say.
German airline Lufthansa made a bid last month to acquire a minority stake in ITA Airways, the successor to loss-making Italian airline Alitalia. According to the German carrier, Italy is an important destination for both business and leisure travelers.
The Portuguese government, which owns the airline TAP, has announced that it is considering a full or partial sale. Lufthansa, Air France KLM and British Airways owner IAG are potential buyers, according to analysts.
