Michael O'Leary: flying is 'too cheap'. Ryanair to raise fares and grow demand

Premium Analysis

According to Ryanair Group chief executive Michael O'Leary, flying has become "too cheap for what it is". He finds it "absurd" that the train journey from Stansted Airport to central London is more expensive than the air fare from Dublin to Stansted.

In FY2022 Ryanair's average fare fell -27%, to EUR27, thanks to COVID-19, but had already been on a downward trend since FY2013. A rebound towards EUR40 is expected in the current financial year, with further increases expected.

In an interview with the Financial Times (2-Jul-2022), Mr O'Leary predicted that Ryanair's average fare would grow from EUR40 to between EUR50 and EUR60 over the medium term.

Ryanair's total revenue per passenger is lower than that of its competitors, and this has enabled it to meet passenger growth targets in the past. If it can maintain its relative price discount, Ryanair may be able to reconcile rising fares with its demand growth targets.

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