Ryanair Holiday Rates Are Expected To Skyrocket In The Near Future.
Key Sentence:
- The head of low-cost carrier Ryanair warned that holiday prices would rise sharply over the next year as consumer demand for tourist routes recovers.
- Michael O'Leary told the Sunday Times that fewer flights, inflation, and more taxes would increase airfare.
"I think holiday tourism in Europe will recover dramatically over the next year," he said. "And the reason I think the price will be drastically higher is because of the lower capacity." Short-haul rivals Ryanair have had to reduce their fleet due to the pandemic, he added. "Take Thomas Cook (six million seats), Flybe (eight million seats), Norway (nearly 24 million seats).
"By 2022, Europe will have about 20% less short-haul capacity, with a dramatic increase in demand. Ryanair plans to open best new base at Newcastle International Airport next year and create at least 60 aviation jobs. Rival EasyJet, meanwhile, has closed its bases at Stansted, London Southend, and Newcastle airports, and Ryanair will suspend all operations at Southend from November 1, meaning no passenger planes will use the airport.
This comes as economists predict that inflation will continue to rise for the rest of the year, which, according to O'Leary, is a factor in increasing airline tickets and the risk of a hike in environmental taxes. However, to counter this, he intends to lower prices for winter 2020 to "gain market share from everywhere."
Airlines have been hit hard by travel bans and restrictions around the world, with many announcing layoffs. EasyJet said in May it planned to cut up to 4,500 jobs as it grappled with the collapse in air traffic caused by the coronavirus crisis. It has started flying with passengers again but does not expect the level of demand to be reached again in 2019 in 2023.
Many airlines have warned that thousands of more jobs could be at risk if the government's grant program is not extended beyond September 30 because reservations have not been restored. They also criticized the government for its "confusing" traffic light trip list system.
Canada, Switzerland, and Denmark were among the last countries to join the UK's green travel list. Meanwhile, the said the government plans to improve the traffic light system in the coming weeks.