Ryanair has revised upward its forecasts for average fares during the winter season, and air ticket prices could rise slightly between October and March. Michael O’Leary, the company’s chief executive, said Thursday that a scenario of stabilization or moderate growth is now more likely than one involving a decline.
In July, Ryanair estimated that winter fares could fall by a low- to mid-single-digit percentage. The company now believes prices will remain roughly at their current level or register a slight increase in the second half of the year.
O’Leary said fares had recently risen by a single-digit percentage compared with the same period last year, following monthly declines recorded between February and July. For the July-September quarter, the company still expects a very small decline in fares compared with last year.
Price developments depend mainly on the cost of oil and Ryanair’s rivals’ capacity. If they reduce the number of flights because of high costs, fares could rise. Oil surpassed the threshold of $100 per barrel this week amid escalating military tensions.
Sources
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