Ryanair says the cost of airfares will drop AGAIN this year, following record profits
Ticket prices will fall by 5 to 7 per cent until March 2018 due to competition from European airlines and weakening of the pound
RYANAIR customers can expect even cheaper fares in the coming year, falling by around five to seven per cent in the run up to March 2018.
The budget Irish airline says the lower ticket prices will be down to increased competition among European airlines and also the weakening of the pound after Brexit.
Over the course of last year, fares dropped by 13 per cent.
The no-frills carrier has also reported record profits, despite tough trading following Britain’s shock EU referendum.
Net profits banked six per cent higher to 1.32 billion euros (£1.14 billion) in the group’s financial year to March 31, compared with 1.24 billion euros (£1.07 billion) last time around, Ryanair said in a statement.
The number of passengers soared 13 percent to a record 120 million as the company slashed fares.
Chief executive Michael O’Leary said: “We are pleased to report a six per cent increase in (net profit) despite difficult trading conditions.”
He added that those conditions were “caused by a series of security events at European cities, a switch of charter capacity from North Africa, Turkey and Egypt to mainland Europe, and a sharp decline in sterling following the June 2016 Brexit vote”.
“We reacted to these challenges by improving our customer experience, and stimulating growth with lower fares.”
The pound’s Brexit-driven slump has reduced the amount Ryanair earns from its key British market, because the money is worth far less once it is converted into euros, which the airline uses to price its earnings.
Despite its positive forecast, the airline also warned of major disruption if Britain did not remain in the “Open Skies” agreement following its departure from the European Union.
Michael O’Leary said: “Lack of clarity on whether the UK will opt to remain in Europe’s open skies agreement could cause significant disruption of flights between the two regions for months after Brexit takes effect in March 2019.”
As a result, the company warned that it would be focusing on expanding business on the European continuent instead of in the UK this year.