Ryanair explained the increase in ticket prices this season
Preparations for the new summer tourist season will soon begin, but experts are already saying that European airlines will have a hard time meeting the demand for travel during the peak season. In particular, Ryanair CEO Michael O'Leary says this.
According to his forecasts, Ryanair ticket prices will increase by 10% this summer compared to the same period last year. At the same time, the growth in the number of passengers will be lower than expected due to the delay in the delivery of new Boeing aircraft, writes News Letter.
According to Ryanair's preliminary forecast, the airline is expected to carry 205 million passengers in the year ending March 2025, up from 183.5 million in the previous 12 months. However, Ryanair now says that with fewer planes, it may have to revise its forecast to 200 million passengers.
"Fares in summer 2024 will increase again compared to summer 2023. Our average airfares in the summer of 2023 increased by 17%. We don't expect to see such a double-digit increase in fares this year. We make our budgets based on the forecast of a 5-10% increase in fares," O'Leary said.
Meanwhile, the owner of British Airways is expected to report a sharp increase in sales last year. In addition, International Airlines Group (IAG), which also owns Iberia, Vueling, and Aer Lingus, will publish its financial results for 2023 on Thursday.
The aviation giant is expected to report sales totaling nearly 30 billion euros (25 billion pounds), a record annual amount for the group and more than a quarter higher than the previous year. The company noted particularly strong demand for flights on its North and South Atlantic routes and top European vacation destinations.
In addition, official data showed that the UK fell into a technical recession at the end of the year. But major travel groups, including Jet2 and Tui, have noted in recent months that consumers are favoring travel abroad despite their incomes being squeezed by the cost-of-living crisis.
As a reminder, Ryanair's £12.99 carry-on travel bag, which TravelWise wrote about, has been peer-reviewed.
