Ryanair Cares Less About Fares Than You Might Think
Skift Take
Fares look like they are coming down in Europe and Ryanair, thanks to its low-cost base and multiple revenue streams, is in a better position than most to weather the storm.
Relatively cheap jet fuel is continuing to keep fare prices low across Europe to the obvious benefit of passengers. For airlines though, it’s a different matter.
Despite the bankruptcy of a number of carriers over the past few years and major consolidation, the market remains very competitive. As usual this is producing winners and losers.
The continent’s biggest, Ryanair, reported a substantial rise (+55 percent) in pre-tax profit to $516 million (€443.7 million) with revenue up 13 percent to $2.2 billion (€1.9 billion) in its first quarter. That all sounds great but its share price has still fallen.
Some have speculated that this is down to the company’s less than positive outlook and in particular that average ticket prices are going to fall by 8 percent in the second half of its financial
