No more plane tickets at 10 euros at Ryanair

No more plane tickets at 10 euros at Ryanair

UPDATE DAY

With soaring energy prices, which accelerated with the war in Ukraine, the era of plane tickets sold off at 10 euros (about 13 dollars), or even less, is gone, warns the boss of the low-cost airline Ryanair, Michael O'Leary. 

“I think there will be no more ten euro tickets, because the oil prices are much higher since the invasion of Ukraine by Russia. Our promotions really cheap (…), I think we are not going to see these prices for a number of years, ”he said on BBC Radio 4 on Thursday.

< p>Low-cost airlines such as Ireland's Ryanair or its British rival Easyjet have shaken up air transport over the past twenty years and slashed prices, participating in a jump in short trips, in particular urban weekend getaways. end.

And according to Mr. O'Leary, average ticket fares on Ryanair are expected to increase by around 10 euros, to around 50 euros (around $66) per trip in the next 5 years.

Which, given the low-cost fare structure with many supplements, especially for luggage, could quickly increase the total cost of a round trip to several hundred euros or pounds and undermine demand.< /p>

The surge in oil prices over the past year (+36% for Brent listed in London) weighs particularly heavily on the costs of so-called “low cost” companies compared to traditional carriers, but it also weighs on the household budget.

Annual energy bills will rise by several thousand pounds on average per household in the coming months in the UK, where inflation could exceed 13% by October, according to the Bank of England.

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Faced with price increases that are cutting into the purchasing power of the British, strikes are multiplying in the country and are also affecting the air sector: security personnel at Leeds Bradford airport (north of England) have thus announced Wednesday evening a strike at the end of August for wages, which promises to disrupt returns from holidays.

Michael O'Leary, however, wants to believe that demand for air travel will continue and that in the face of budgetary constraints of consumers , the “low cost” carriers will do well.

He also protested Thursday against Brexit which has greatly reduced access for European workers to the United Kingdom, where they occupied hundreds of thousands of jobs before.

“The labor market is very tight, particularly for low-skilled jobs in the hotel and catering industry, distribution and agriculture, and also for security and baggage handlers at airports”, underlines the director geant.

“And if there was any honesty from the government (of departing Prime Minister Boris) Johnson, they would admit that Brexit was a disaster for the free movement of workers and that one of the main difficulties facing the British economy today is the lack of workers”.