This budget airline is making record profits
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Loading... - Bianca Palumbo
- 31 Jan 2023
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Ryanair expects it will be able to charge higher prices for flights over Easter and the summer, thanks to strong demand from American and Asian tourists and less competition from rivals.
The low-cost European carrier told customers in an earnings statement on Monday to “book early” before cheaper tickets sell out. It reported record profit for the three months to December 31, after increasing airfares by 14% compared to their pre-pandemic level.
“The return of Asian traffic to Europe and a particularly strong transatlantic marketplace driven by a very strong dollar will see robust demand both through the Easter and into the summer of 2023 for short-haul flights across Europe,” CEO Michael O’Leary said in a video posted to the company’s website.
The collapse of rival airlines during the pandemic and cuts by competitors to fleets and passenger capacity would also underpin Ryanair’s strong traffic numbers “hopefully at higher fares,” O’Leary said.
The Dublin-based airline has emerged from the coronavirus pandemic in a strong position, even as several of its competitors went bankrupt or needed government-backed bailouts. The latest casualty was small UK regional carrier Flybe, which filed for bankruptcy and ceased trading over the weekend.
Ryanair has also managed to avoid the staff shortages that have plagued rivals, leaving it well positioned to take advantage of a swift recovery in air travel following the pandemic. Read More…
