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September 29 2022, Virtual
Average fares fall 17%
Budget carrier Ryanair today (November 2) announced half-year post-tax profits of €387m, up 80% on last year's results.
The average fare fell by 17% between April and September to €39 but this was offset by a 15% growth in traffic.
Costs for the airline also fell by 27% due to lower fuel prices.
Michael O'Leary, Ryanair's ceo, said: "Traffic growth is strong, but at the expense of declining average fares...These results are heavily distorted by a 42% fall in fuel costs, which has masked a significant 17% decline in average fares."
Despite the strong performance, Ryanair predicted that the remainder of the financial year would result in a loss.
"We expect average fares to decline by up to 20% during Quarters 3 and 4, which will result in both these quarters being loss making," said Mr O'Leary.
"Market conditions in Ireland, the UK and Europe continue to be difficult, characterised by an absence of consumer confidence; and specific markets (i.e. Ireland and the UK) which have been damaged by misguided tourist taxes levied on air passengers but not on competing ferry or train journeys.
"Traffic at many Irish and UK airports has slumped, with Ireland facing a decline of 15% of its air traffic, and the UK set to lose almost 10% of its traffic.
"We again call on the British and Irish Governments to scrap these stupid tourist taxes and reduce airport charges."