Ryanair’s summit notes that the cost spiral has made it difficult to make money. It is believed that ticket prices will rise in the next five years.
– It’s getting way too cheap for what it is. I think it’s ridiculous every time I travel to Stansted that a train trip to London is more expensive than a plane ticket, says O’Leary in an interview with financial times.
Higher oil prices and environmental taxes will raise the average price of Ryanair tickets, according to Ryanair’s president.
For three decades, the company has been shopping for low-cost tickets by chasing cost cuts.
– It’s become my turn. I made a lot of money by doing this. In the end, I don’t think flying is sustainable with an average price of €40. It’s very cheap for that. I still think it will be cheap and achievable at 50 and 60 euros.
EasyJet and Wizz air have already announced expensive tickets, but O’Leary is the first to announce a long-term price increase, according to the Financial Times.
The Irish airline has been well insured against rising oil prices for the rest of the year, but Ryanair’s boss believes inflationary pressure with higher payroll taxes will hit the industry hard next year.
The average price for typical southern destinations in Portugal, Spain and Greece has already made a price jump outside of London. On the other hand, prices for large cities such as Athens, Barcelona and Milan have fallen, according to the price service Kayak.
New low-cost players like Flyr and Norse Atlantic have joined here. On the other hand, Wizz air closed its domestic Norwegian flights after a short time. Norwegian airports are now served by foreign bases.
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