Ryanair customers face price rises
Ryanair ticket prices have been rising since the end of March after a sharp fall hurt the airline's profitability last year. Europe's biggest airline by passenger numbers posted a 16 per cent decline in post-tax profits to €1.6billion for the 12 months to 31 March, as softer demand and a dispute with online travel agents drove fares down by 7 per cent.
However, resurgent demand the timing of this year's Easter holiday has led to an average increase in fares just shy of 7 per cent, according to finance chief Neil Sorahan, compared to a forecast of 4 to 6 per cent in March. It means fares for the three months ending in June are expected to rise by a 'mid-to-high teen percent' year-on-year, Ryanair said.
Ryanair shares were up 2.8 per cent in early trading at €23.04. The shares have recovered strongly from a 12-month low of €13.41 euros last July, which followed a 15 per cent fall in average fares in the first quarter.
And boss Michael O'Leary could be in line for a bonus of close to €100million if the share price remains above €21 for 28 days, according to Reuters. It has been trading above that level since 2 May. O'Leary said summer booking were running roughly 1 per cent ahead of the same period last year as the airline forecast continued robust demand.
Ryanair flew a record 200million passengers last year after trimming an earlier 205million target due to delivery delays from Boeing. It expects to fly 206million passengers in the year to 31 March 2026.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said:' Ryanair's update indicates that the airline will be flying into calmer skies this year, with consumers more willing to withstand hikes to air fares.
'Travellers are brushing off economic uncertainty and appear determined to ring-fence available budgets to spend on trips abroad. 'The company says it sees strong summer demand in each of the 37 countries it operates in, with summer bookings 1 per cent ahead of last year.
'But the company held off from providing more specific guidance given the unpredictable nature of geopolitics and trading relationships around the world.'
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