In the face of rising energy prices, the airline Ryanair announced on Thursday 11 August that it would stop selling tickets costing ten euros or even less.
“I think there will be no more ten euro bills because oil prices are much higher since Russia invaded Ukraine. (…) I think we won’t see those rates for a few years.”announced the boss of the low-cost airline Ryanair, Michael O’Leary, on BBC Radio 4.
Low-cost airlines such as Ireland’s Ryanair or its British rival easyJet have disrupted air travel over the past two decades and slashed fares, contributing to a rise in short trips, including weekend city breaks.
About fifty euros each way
According to Mr O’Leary, average ticket prices at Ryanair are therefore expected to rise from ten euros to around fifty euros per route over the next five years. Which, given the fare structure of low-cost airlines with many surcharges, can quickly increase the total cost of a trip to several hundred euros and undermine demand.
The rise in oil prices over the past year (+36% for London-listed Brent) weighed particularly heavily on the costs of well-known companies “inexpensive” compared to traditional carriers, but it also weighs on the household budget. Annual energy bills are set to rise by several thousand pounds per household on average over the coming months in the UK, where inflation could top 13% by October, according to the Bank of England.
In view of price increases that reduce the purchasing power of the British, strikes are increasing in the country and also affect air transport: the security staff at Leeds-Bradford Airport (Northern England) therefore announced a strike at Leeds-Bradford Airport (Northern England) on Wednesday evening at the end of August for wages, which could disrupt the return from vacation.
Ryanair boss denounces the consequences of Brexit
However, Michael O’Leary would like to believe that demand for air travel will continue and that airlines will, given consumer budget constraints “inexpensive” will drop out of the game.
He also protested on Thursday against Brexit, which has severely restricted European workers’ access to the UK, where they previously held hundreds of thousands of jobs. “The job market is very tight, especially for low-skilled jobs in hotels and restaurants, sales and agriculture, but also for security and baggage handlers at airports”the leader emphasizes.
“What if the government had a little honesty? [du premier ministre sur le départ, Boris] Johnson they would agree that Brexit has been a disaster for the free movement of workers and that one of the main difficulties facing the UK economy today is the shortage of workers.”.