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Ryanair to raise fare prices to Europe this summer due to high demand

Date: May 17, 2022 Omkar Patwardhan Omkar Patwardhan
Ryanair to raise fare prices to Europe this summer due to high demand 
Ryanair, the Irish low-cost carrier, has reportedly warned that flight prices are set to climb this summer owing to rising demand for European beach holidays.



Michael O'Leary, Ryanair’s CEO, stated that flight prices are expected to climb by a ‘high single-digit percentage’.



O’Leary claimed that lower fares were presently fueling an upsurge in passenger numbers, aiding the airline's comeback from Covid-19.



The CEO had hoped that the airline would rebound to decent profitability this fiscal year.



On Monday, the company disclosed yearly losses of €355 million ($371 million), claiming that the Omicron variant and the crisis in Ukraine had hampered its recovery from the lifting of Covid limitations.



Concerns that supply from Russia, a key exporter of fossil fuels and jet fuel, could be disrupted have pushed up global oil prices.



The group's loss for the year ended March 31 was lower than projected, compared to losses of €1.02 billion ($1.06 billion) the previous year.



Ryanair announced robust traffic recovery, with 97.1 million passengers, up from 27.5 million the previous year thanks to the removal of travel restrictions due to the pandemic.



The carrier intends to increase this to 165 million travelers this year, surpassing the previous high of 149 million set before Covid.



In other news, holiday giant Tui has predicted that summer reservations will almost reach 2019 figures this year but warned that no last-minute offers will be available.



Mr. O'Leary believes that ‘pinch points’ at the UK airports like Heathrow or Manchester will be removed by the end of June, just in time for the busy summer season.



O’Leary stated that there is no doubt that passing through airports this summer will be difficult and the carrier advises all the passengers to arrive early and leave plenty of time to get on with airport security. However, this was not the situation at other Ryanair airports, including Stansted, Glasgow, and Bristol.



Ryanair did not experience the same recruitment difficulties as some of its rivals as it had retained employees.



To avert job losses during Covid-19, Ryanair advised employees to undergo salary cutbacks.



Source credit: https://www.bbc.com/news/business-61463274

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Omkar Patwardhan

Omkar Patwardhan started his professional career in the hospitality industry. Having nurtured a deep-sated passion for words however, he found his way into content writing and now pens down articles for numerous websites, including News Origins, spanning the sectors of business, finance, and technology.