Ryanair prices to fall by 15% - 20%

After a reported drop in profits Ryanair air fares to fall by up to 20%

November 2008

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Ryanair has today reported a drop in profits of 47% for the last six months to September 30 2008. Their profits in the last six months were 214.6 million Euros compared to 407.6 million Euros over the same six month period last year.

One of the main factors was the rising cost of fuel which has risen by 101% over this period.

But on a buoyant note the airline said that with falling fuel prices and a commitment to keep its planes flying with fewer empty seats it would continue to lower air fares.

In a statement it said that average fares in the second half of the 2008/9 financial year were likely to fall by between 15 and 20 per cent, leading to a loss in the third and fourth quarters.

However, the company still feels that it will still break even over the whole year whilst still expecting to make a loss over the next six months.

Michael O'Leary, Ryanair's chief executive, said in a statement released this morning: "The recession will continue to drive down oil prices and fares this winter. We will continue to respond with lower fares and aggressive price promotions to keep Europe flying and to maintain our market leading load factors.

He continued: "Although we have limited visibility, we now believe that average fares in the second half will fall by between -15 per cent to -20 per cent leading to losses in the 3rd and 4th quarters. Our full year average fare could fall by almost -12 per cent."

It was also rumored that Ryanair is looking to purchase up to 50 additional planes from other failed operators and then fly to the USA for as little as £8 but if flying business class the price would reflect other airlines pricing.

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