As I am sure you have noticed, practically everything is becoming more expensive. Inflation has hit across the globe and, coupled with rising fuel costs caused by the war in Ukraine and a rise in demand, the aviation industry has been struggling to keep operational costs down.
Given these circumstances, Ryanair’s CEO Michael O’Leary has commented that the carrier’s iconic and well-loved €1 and €10 fares will no longer continue.
All good things must come to an end…
2022 has been a year and a half for the air travel industry. Juggling flight cancellations and delays caused by staffing issues, over-booking, strikes, intense demand and more has also seen soaring profits and positive signs of recovery following the pandemic.
Household name Ryanair has struggled but not nearly as much as its competitors British Airways and easyJet, to name a few. The airline cancelled a mere 0.3% of flights in the first six months of this year, while BA cancelled 3.5% and easyJet 2.8%.
But that does not mean it has not been difficult for the Dublin-based career.
Today, CEO Michael O’Leary made the announcement that the carrier will be discontinuing its beloved €1 and €10 fares for the time being due to the rise in costs impacting operations.
“There’s no doubt that at the lower end of the marketplace, our really cheap promotional fares – the one euro fares, the €0.99 fares, even the €9.99 fares – I think you will not see those fares for the next number of years.”
Ticket fares have risen since 2019 by nearly a third and, due to global circumstances, it is probable that they will continue to rise. For some cities, prices jumped more than 250% this week compared to the same period in 2019.
Last year, you could fly Ryanair from London Stansted Airport to Madrid (a fairly popular destination) for €5.92 one-way. Today, one-way would be a staggering €153.86.
So flying in and around Europe has become noticeably more expensive. Despite this, O’Leary is confident that passengers will continue to fly because of how convenient it is. But we all love a bargain, imploring O’Leary to add that travellers will begin to seek low-cost options more frequently.
“We think people will continue to fly frequently. But I think people are going to become much more price sensitive and therefore my view of life is that people will trade down in their many millions.”
Therefore, while Ryanair will be losing their beloved under €15 fares, the situation the air travel industry finds itself in benefits carriers just like them.
The year of the budget carrier?
The more fly in this current climate, the more low-cost carriers will benefit. Ryanair, easyJet and Wizz Air advertise no-frills, efficient services that allow you to get from A to B. As the cost of living remains high, diminishing the impact of our salaries, budget carriers will become the optimum choice for much more travellers compared to this time last year.
Are you sad to see the €1 and €10 fares go? Have you switched airlines to fly with due to inflation? Do share your thoughts with us in the comments below!