Strategic Meetings Summit London, 26 September,
September 29 2022, Kimpton Fitzroy London
Friday 30 September 2022, JW Marriott Grosvenor
In an unprecedented statement, Ryanair says it will sit seven of its 40 Stansted-based Boeing 737-800s on the ground this winter. With the list price of each aircraft between $70.5m and $79.0m (”35m to ”40m) this represents something in the order of ”270m of aircraft doing nothing.
However Ryanair claims it is more profitable to ground the aircraft during the less busy winter months than fly them.
Whilst failing to actually detail the routes and destinations affected, Ryanair will drop some services and reduce frequency on others. Passengers already booked will receive a full rebate or can chose different flights. Whether the fare charged is the current one available, or that originally paid, ABTN has been unable to find out.
Ryanair says Stansted offers "a third rate service and (charges) extortionate prices. "
Ryanair's censure of Stansted is in some ways patently obvious, the airport is clearly suffering from its own success as the world's most popular low fair gateway, but also from things outside its control. HM Revenue and Customs provides staff at passport control not the airport, an area that has come in for particular condemnation.
Chief executive, Michael O'Leary, said: "BAA Stansted's doubling of airport charges since April has caused traffic declines for the first time in 15 years. The current service provided by BAA at Stansted is nothing short of appalling."
In spite of all the headline grabbing by Mr O'Leary, and tales of woe, Ryanair continue to reel in excellent results with net profits up in the first quarter to 30 June, 20% to ”138.9m (”94m).
"Our outlook remains cautious for the fiscal year due to the softness of traffic and yields. Although we have little visibility beyond the next 2 months we expect this weaker demand to continue. We anticipate that yields in Q2 will be slightly down, and winter (H2) yields be down by as much as -5% to -10% compared to last year," he said.