MADRID – Ryanair’s CEO warns that the ticket price of European flights will rise ‘drastically’ in 2022. This will be the result of the combination of a large number of tourists and a smaller fleet of aircraft. And in addition, an increase in flight tax.
The director of the Irish low-cost fighter said in an interview with the Sunday Times on Sunday: “The reason why I think prices will rise drastically next summer is that there will be about 20% less capacity at the airlines for flights within Europe.”
According to O’Leary, this reduced capacity coincides with a large number of tourists on the continent who will start planning trips again after the mobility restrictions are lifted.
He added that the downsizing of tour operators and airlines such as Thomas Cook (6 million seats less), Flybe (8 million seats), Norwegian (24 million seats), and now Alitalia with 40% less capacity means that in Europe, there is up to 20% less capacity for short-haul flights.
The third factor of importance in his view is that taxes on flying have been increased everywhere. However, O’Leary took the opportunity to announce a price drop on flights on his own airline for the coming winter. As his aim is of ‘gaining market share everywhere’.
Not slashing the ticket price
Easyjet, a direct competitor of Ryanair, is not slashing its prices. But with the company in economic crisis, it plans to lay off 4,500 workers if the market does not recover quickly. In any case, the levels of 2019 are not expected at Easyjet until 2023. This budget fighter has more business travellers.
Also read: EasyJet anticipates top summer