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RyanairFollowing the news that Michael O’Leary, the chief executive of Ryanair, has decided to increase prices to cope with rapidly rising fuel costs.

Benedict Bradley, Thematic Analyst at GlobalData, a leading data and analytics company, offers his view:

“Budget airlines such as Ryanair have enabled more and more people to travel abroad. When it comes to the pressures on international travel, it appears that the cost-of-living crisis is going to pick up where the pandemic left off—with domestic travel numbers booming, but foreign travel under the pressure of hundreds of cancellations.

Keir Maclean, the Thematic Analyst at GlobalData, offers his view:

“The rise in ticket fares is being driven by a dramatic increase in fuel costs. However, the rising ticket prices will only compound the current cost-of-living crisis, and those already struggling could be priced out of the travel market.

“As shorter, city breaks become less affordable, we may see a shift towards families choosing to take fewer, longer trips to reduce their overall expenditure on flights.” According to GlobalData’s forecast, UK international travel numbers will surpass pre-COVID levels by 2024, but rising ticket prices put this in jeopardy.

“While the price increase will be relatively insignificant for some, others will have to reconsider their holiday plans in the coming years. However, fuel price inflation is not exclusive to Ryanair and will drive up overhead costs across the industry, negatively impacting not just Ryanair but competitors such as EasyJet and Wizz Air. Travel may be the first thing to go to ease these cost-of-living problems.” When asked in GlobalData’s Q2 2022 consumer survey, 66% of UK respondents said they were either extremely or slightly concerned with the impact of inflation on their household budget. Weekend breaks abroad may become unfeasible as people pinch pennies to pay off sky-rocketing energy bills. Ryanair is the first budget airline to publicly declare the end of super low-cost flights. Since the beginning of 2022, the price of jet fuel has risen by 90%*.

Written by: Matthew Thomas