The CEO of Ryanair, Michael O’Leary, announced that the airline’s trademark low-cost flights, which cost between € 1 and €10, would no longer be offered.
O’Leary said we would not see our cheap promotional fares like the one euro fare, the €0.99 fare, or even the €9.99 fares for several years.
The chief executive officer of the airline said that rising prices for both fuel and labour, as well as rising passenger demand, were to blame.
“We believe travel by air will continue to be very popular”. However, O’Leary believes that people will become more price sensitive, and as a result, he believes that millions of people will trade down in the near future.
Compared to 2019 costs, airfares across Europe have increased by over a third.
While O’Leary blames demand, he blames Brexit for the price hikes.
After Boris Johnson’s resignation as prime minister of the United Kingdom, Ryanair’s chief executive officer said that Johnson and “other ambitious idiots” were to blame for the country’s unfavourable working conditions.
O’Leary said on BBC Radio 4’s Today programme, “If there were much more honesty, or any honesty, from Boris Johnson’s government, they would come out and declare that Brexit has been a disaster for the free movement of labour and one of the fundamental issues being faced by the UK economy.”
Many airlines are on strike and cancelling flights due to a lack of employees because of the Covid 19 pandemic. Beginning from 8 August and continuing until 7 January 2023, Ryanair’s Spanish cabin crew is planning weekly strikes. But a representative for Ryanair said in a statement, as reported by Reuters, that the airline anticipates no disruption to its Spanish flights or schedules in August or September due to the current threats of strikes by a small number of its Spanish cabin crew.
Ryanair’s cancellation rate is much lower than that of its rivals. Compared to British Airways (3.5%) and EasyJet (2.8%), the low-cost carrier cancelled only 0.3% of flights in the first half of this year.
O’Leary boasted that his company was able to respond to the labour shortage more effectively than its rivals since it began hiring and training cabin and flight crews in November.