No more €10 flights, says Ryanair boss Michael O’Leary

Ryanair (LON:RYA) boss Michael O’Leary has signalled an end to the era of €10 flights, stating that average fares on the Irish budget carrier would rise to roughly €50 (£42.20) over the next five years.

Speaking on BBC Radio 4’s Today programme, O’Leary said: “There’s no doubt that at the lower end of the marketplace, our really cheap promotional fares – the one euro fares, the €0.99 fares, even the €9.99 fares – I think you will not see those fares for the next number of years.”

Rising fuel costs are undoubtedly having an impact on fare prices, although the sector as a whole is facing pressure to reduce its carbon emissions.

On that note, O’Leary called the focus on air travel “misplaced”, arguing that road transport and the shipping sector were greater contributors to carbon emissions overall.

Ryanair faces sector challenges

Ryanair has fared reasonably well in the post-pandemic environment.

The airline beat first-quarter expectations this year, while the mass cancellations, strikes and staff shortages hitting easyJet (LON:EZJ) and others have had less of an impact on the Irish carrier.

Capacity was at 96% in July, while passenger count grew by 16.8 million, making for an 81% increase compared to 2021 numbers.

O’Leary pointed to Ryanair’s robust hiring policy in the midst of the Omicron variant outbreak, a gamble which seems to have paid off.

But the “fundamentally broken” post-Brexit UK labour market poses a threat to the airline industry, according to O’Leary, calling on the next UK prime minister to prioritise a free trade deal with the EU to alleviate staff shortages in UK airports.