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Ryanair’s CEO has cautioned that travelers can expect to pay more for air travel during the summer due to limited capacity.
The CEO, Michael O’Leary, stated that problems with the availability of aircraft will make it difficult for European airlines to fulfill the high demand for travel during peak season.
According to his prediction, Ryanair’s ticket prices will increase by approximately 10% this summer compared to the same time last year.
According to Mr. O’Leary, this is due to the fact that the airline’s increase in passenger volume will not meet expectations, as there are delays in the delivery of Boeing’s new aircraft.
Ryanair had initially predicted that by the end of March 2025, they would transport 205 million passengers, an increase from the 183.5 million passengers carried in the previous 12 months.
According to Mr. O’Leary, speaking at the airline’s Dublin headquarters, the reduction in aircraft may result in a decrease of passengers from 205 million to 200 million.
”
The amount may be slightly less than 200 million, but it is uncertain at this point.
It is likely that our growth in Europe will be limited this year, resulting in a rise in fares for summer 2024 across the continent.
He continued, “Fares for summer 2024 will once again increase compared to summer 2023.”
The average cost of our air fares increased by 17% in the summer of 2023.
“We do not anticipate a double-digit fare increase this year.”
“We are creating our budget using a fare increase of 5-10%, which seems reasonable to me.”
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The amount could possibly exceed or fall below our current estimate, as it is uncertain.
“If the capacity were increasing, I believe that the fares would be decreasing.”
Ryanair has an agreement with Boeing to receive 57 new aircraft by the end of March next year, but the actual number is expected to be 40 to 45.
According to him, the American company is under close scrutiny by the Federal Aviation Administration (the regulatory body in the US) after an Alaska Airlines Boeing 737 Max 9 experienced a mid-air blowout on January 5th.
Serious worries have been expressed regarding the oversight of quality for recently manufactured Boeing planes, resulting in a reduction of production rate.
Last July, it was reported that over 1,000 engines built by Pratt & Whitney would have to be taken out of Airbus planes because of a safety recall.
According to Mr O’Leary, airlines like Wizz Air, Lufthansa, and Air France will likely ground at least 20% of their A320 fleets due to this situation.
He stated: “If we were able to receive all 57 planes from Boeing before the end of June, we would greatly benefit all summer since we currently have high demand from airports.”
Source: independent.co.uk
