Ryanair lowers fare outlook but inflation persists

CAPA - Centre for Aviation, in a report entitled: 'Europe aviation pricing: Ryanair lowers fare outlook, but inflation persists', stated (15-May-2024) Ryanair's new expectation of a low single digit percentage increase brought the airline more in line with other LCCs' commentary on the outlook for yields in summer 2024. Passenger air travel price inflation data shows that EU fare increases have settled in the single digits for many months, after an extended period of double digits in the initial post-pandemic recovery. UK airfare inflation turned negative in Mar-2024, which is the most recent month for which figures are available. Nevertheless, prices in Mar-2024 were 57% higher in the UK and 45% higher in Europe, compared to Mar-2019. Given the strength of these increases, a more consistent weakening seems likely at some point. However, with supply chain induced capacity constraints enduring, it is still too early to call the end of positive inflation rates for air travel in Europe. [more - CAPA Analysis]