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The CEO of Ryanair revealed that the company is willing to sell airplane tickets at a reduced price in order to fill seats during non-peak times. He also announced that low-cost flights will still be available, but they may not be as inexpensive as before.
After a study revealed that many flights were being sold for less than the required £13 Air Passenger Duty, Michael O’Leary gave an interview to The Independent. This duty must be paid by Ryanair when a customer boards one of their planes from the UK.
A ticket priced at £12.99 is available for travel from London Stansted to Venice on any day between Saturday, January 20th and Thursday, January 25th.
From January 18th to January 24th, a one-way trip from Essex airport to Catania in Sicily costs £12.99, covering a distance of 1,230 miles. This is a cheaper option than taking the Stansted Express train from London to the airport, even with a railcard.
The Independent discovered a deal for flights leaving from British airports on January 24th for £12.99. This includes a trip from Bristol to Sofia in Bulgaria, which takes approximately three hours and covers nearly 1,400 miles. Other trips available at this price on the same day are Belfast International to Porto and Stansted to Prague or Baden Baden.
“In certain times of the year, like January and February before the mid-term break, Easter holidays, or summer, there will always be a need to fill flights,” stated Mr. O’Leary.
“We are pleased to offer flights with discounted prices, even if they are not profitable. Therefore, there will continue to be a large selection of affordable airfares.”
The airline informs investors that they employ a strategy of actively managing load factor while passively adjusting yield. This means that seat prices are set to ensure that high load factor goals are met.
In 2022, Michael O’Leary announced that the era of €9.99 (£8.50) flights was coming to an end. He reaffirmed this statement to The Independent for 2024.
“The current cost of fuel is $80 per barrel. Although air fares will not likely decrease to £9.99, prices of £15, £20, or £25 are still significantly lower compared to the prices in the past, particularly in the 1980s and early 1990s when airfares were commonly priced at £200 or £300.”
According to Anna Hughes, who leads Flight Free UK, the consequences of the climate crisis are becoming increasingly apparent, as we witness a rise in extreme weather occurrences in both the UK and Europe.
Our excessive emissions and high-carbon lifestyles are to blame for this issue. These lifestyles involve a seemingly unquenchable desire for air travel. The increasing number of flights, surpassing pre-pandemic levels, will only exacerbate our already vulnerable climate.
The Ryanair flights priced at £12.99 only permit a small backpack to be brought onto the plane, and seat assignments are assigned randomly. All other accommodations, such as larger carry-on or checked baggage and speedy boarding, come at an additional cost.
According to aviation expert Sean Moulton, Ryanair’s strategy involves increasing their market share and establishing airport dominance by offering low fares and attracting more passengers, resulting in reduced costs at major airports.
“Ryanair primarily generates its profits by offering additional services, including baggage check-in, seat selection, and onboard purchases. These services help balance their low ticket prices and ensure their continued profitability.”
Ryanair predicts that their profits for the full year will amount to approximately €2 billion or £1.72 billion.
According to Mr. O’Leary, there will be less flight disruptions during the summer of 2024 compared to last year. However, concerns about air traffic control still persist.
“I believe that the strikes conducted by French air traffic control will persist. Europe has not taken any measures to safeguard overflights, which could resolve 90% of these problems. Additionally, I have concerns about UK Nats and predict that there will be ongoing systems failures and understaffing.”
“Besides that, I anticipate a more positive summer overall. However, there will still be limited capacity in Europe. Therefore, I remain optimistic that airport operations, with the exception of potential Nats failures or French ATC strikes, will be smoother compared to last summer.”
Listen to Simon Calder’s interview with Ryanair chief executive Michael O’Leary
Source: independent.co.uk
