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Budget airline Ryanair Holdings PLC is planning to raise prices as fuel becomes more expensive, the chief executive officer of the Irish firm's Austria-based subsidiary Laudamotion told dpa on Monday.
‘The average price for a Ryanair ticket is likely to rise from €40 to €50 in five years,’ said Andreas Gruber, CEO of Ryanair subsidiary Laudamotion.
The airline is trying to reduce the impact of rising oil prices with futures contracts that fix prices and by buying cheap paraffin for its stocks, but it cannot completely cushion rising fuel prices, Gruber said.
The airline sees itself at an advantage over more expensive rivals amid economic hard times.
‘In the recession, more people will pay attention to the ticket price,’ Gruber said.
Ryanair is not alone in raising prices: Deutsche Lufthansa AG for example has announced higher fares for the rest of the year.
Ryanair appears to have let behind the slump in passenger numbers during the coronavirus pandemic.
In the current financial year from April 2022 to March 2023, Ryanair is expected to transport 166 million passengers in Europe, well above the level before the pandemic hit.
In the next financial year, passenger numbers should rise to 185 million, Gruber said.
source: dpa
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