Ryanair to cut fares

1 February 2016

Ryanair Ryanair are looking at cutting their fares by 6%, and you've got falling fuel costs and improved profits to thank for it.

The airline predict that they'll be doing this (so nothing is certain yet) as they announced that they'd more than doubled their profits for the third quarter of their financial year. This follows the company reducing their prices in the wake of the Paris terror attacks.

Ryanair have been performing well, with customer numbers going up by 20%, which means 25 million people are now flying with them.

Michael O’Leary says: "Following a strong first half of Q3, we noted weaker pricing and bookings immediately after the terrorist events in Paris and Brussels. We reacted to this softness by running price promotions and discounted fares to stimulate double-digit traffic growth."

"The key driver over Q4 and into the first half of next year will be strong traffic growth, strong capacity growth but weaker pricing and weaker fares. That took a turn immediately after the Paris and Brussels terrorist events of mid-November. We expect the lower fare environment will maintain for the foreseeable future."

The company is also planning on expanding their business, which means even more passengers to be had. O'Leary said that Ryanair is such an attractive proposition, because of their low fares, and the new 'nicely nicely' approach that they've adopted over the last 12 months. There's been an improvement with the Ryanair website, and generally, the company has tried to be less irritating, which of course, O'Leary once thrived on.

As well as this, Ryanair are also planning to buy back €800m of their own shares. Either way, it means cheaper tickets for everyone who uses them, which for now, is a good thing.

TOPICS:   Travel

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