Flying for 10 euros is going to end. Or so the CEO of Ryanair says

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Michael O’Leary, CEO of Ryanair, has been warning for months that flights low costthose who have allowed millions of people to travel cheaply, are going to suffer big blows from now on. In words to the BBCtoday the director has declared the following:

“I think there will be no more flights of 10 euros, because oil prices are much higher since the Russian invasion of Ukraine”

“There’s no doubt that at the bottom end of the market, our really cheap promotional fares – the €1, the €0.99 or even the €9.99 – I think you won’t see them for years to come.”

In July, O’Leary made a similar point, claiming that flying had become “too cheap.” However, he also did not get to talk about drastic changes in the market low costas he mentioned that “I don’t think traveling by plane is sustainable in the medium term with an average fare of 40 euros. At that price it’s too cheap. But I think it will still be very cheap and affordable at 50 and 60 euros“.

Ryanair blames inflation and Russian invasion

The CEO has mentioned that he believes that people will continue to fly, but that airline customers will be more “price sensitive” and they will look for more offers when traveling. This is strange coming from a company like Ryanair, with a high percentage of flights that was already explained more from those offers than from a real need to travel.

As O’Leary stated, from the company they blame the Russian invasion as the main cause of the current prices of fuels. It must be remembered, however, that since 2020 there have been crises in various fields that also explain the growth in the prices of raw materials, energy, etc. In fact, he also blames Brexit for the problems that have occurred at British airports in these weeks of so many flights. It is, therefore, a multifactor crisis.

Oleary

In the absence of knowing if we are in a conjunctural situation or one that ends up becoming structural, After the harsh pandemic, everything indicates that companies want to have somewhat more comfortable marginsOtherwise, we would not talk about the era of 10-euro flights being over, but that it is over as long as fuel prices do not go down. Of course, O’Leary expects them to remain high in the next five years.

One factor that has prevented Ryanair from increasing flights is that prior to Putin deciding to invade Ukraine, the company had already refueled at a lower price than the current one. But those reservations don’t last forever.

Via | Guardian

Image of O’Leary: Flickr

Michael O’Leary, CEO of Ryanair, has been warning for months that flights low costthose who have allowed millions of people…

Michael O’Leary, CEO of Ryanair, has been warning for months that flights low costthose who have allowed millions of people…

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