Travel by air will become more expensive for consumers. Air fares could rise between 10% and 15% this year but are unlikely to increase more than 20%, Chief Executive of Ryanair Michael O’Leary has said.
Ryanair’ chief said earlier the era of the €10 (£8.80) flights is over as fuel costs rocketed after Russia’s invasion of Ukraine.
Ryanair’s average fare would rise from roughly €40 (£33.75) in 2021 to roughly €50 (£44) over the next five years, he said.
Speaking on Wednesday, Mr O’Leary said traffic on the budget carrier was expected to grow by 10% this year. Strong bookings may continue through the summer, he added, driven in part by US tourists coming to Europe after the COVID pandemic.
Office of National Statistics figures showed air travel prices increased more than 44% in December from a year earlier – and the greatest increase since 1989 – due to high demand for travel.
There are several reasons why airfares may be rising. Some of the most common reasons include:
Fuel costs: Fuel prices can have a significant impact on the cost of air travel. When fuel prices rise, airlines often increase their fares to compensate for the additional expense.
Operating costs: Airline operating costs, such as labor, maintenance, and airport fees, can also affect airfares. If these costs increase, airlines may need to raise their fares to remain profitable.
Demand: If there is high demand for air travel, airlines may raise their fares to take advantage of the increased demand.
Competition: If there is less competition among airlines on a particular route, airlines may be able to increase their fares without losing customers.
COVID-19 pandemic: The pandemic has significantly disrupted the airline industry, resulting in decreased demand and increased operating costs. As a result, airlines have had to increase their fares to remain financially stable.
It’s important to note that airfares can be affected by a variety of factors, and the reasons for rising fares may vary depending on the specific circumstances.
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