On the day that Ryanair informed the market that profits grew 34% in the fiscal year ending March 31, to 1.92 billion euros, Michael O'Leary said that demand for flights is “positive”, and added that “recent prices will be lower” than the airline expected, according to a report by ECO.
At the end of February, the company announced that it would increase ticket prices for the summer by 5% to 10% due to supply constraints caused by the delay in the delivery of aircraft by Boeing.
The expectation is now more moderate: “It is a little surprising that prices have not been stronger and we are not sure if this is just a consequence of consumer sentiment or a feeling of recession across Europe”, explained the leader of Ryanair, in the results presentation, cited by the Financial Times and Reuters.
Despite continuing to expect the “peak” in demand for travel in July and August, the person in charge does not rule out making discounts to reach the desired passenger target: “If we have to make discounts or reduce fares to reach a 94% passenger rate, occupation in April, May, and June, so be it”, he added.
In the fiscal year ending on March 31, Ryanair saw profits grow 34%, to 1.92 billion euros, compared to the same period last year. The Dublin-based company carried 9% more passengers, totalling 183.7 million, despite delays in Boeing order deliveries. During the period, revenues increased by 25%, to 13.44 billion euros.
Europe is heading into a deep recession that could cause the tourism sector to collapse.
By Pete from Algarve on 21 May 2024, 09:25