Tourists are waiting longer to book tickets, and those who buy flights later this year may face higher prices, warns Europe’s largest airline by passenger numbers.
Neil Sorahan, Ryanair’s chief financial officer, said he is „increasingly confident that we will not see fare shocks this summer,” reports The Guardian.
The airline has announced that fares have fallen in recent weeks due to uncertainty surrounding the Middle East conflict, and prices are expected to drop by a "single-digit percentage" in the three months ending in June.
People are no longer rushing to book
Ryanair has also lowered its outlook on fares for this summer, with prices now expected to remain "generally constant" compared to last summer, after an earlier forecast of modest growth in the peak travel season.
"Demand is still strong, but people are waiting longer to book, so we don't have the visibility we normally have for July-September," Sorahan said.
"Closer bookings are in power now, but if people wait later, they may accept higher fares," he added.
The tourism industry has been affected by concerns about aircraft fuel supply this summer, as shipping through the Strait of Hormuz remains restricted. Ryanair has stated that Europe is well supplied with fuel due to shipments from West Africa, Norway, and the Americas.
Tourists have started booking their summer trips later than in previous years and have shown increased interest in domestic travel.
Dan Coatsworth, head of markets at AJ Bell, said the market is "too fragile" to raise fares in response to rising costs, as higher inflation continues to reduce consumer spending.
Record profit and sufficient stocks for Ryanair
The airline reported a record net profit of 2.26 billion euros for the financial year ending in March.
However, Ryanair has suspended forecasts for the 2027 financial year, saying it is "far too early" to provide predictions due to potential fuel price increases, environmental taxes, and salary expenses.
Although Ryanair has covered 80% of its jet fuel needs by April 2027, at around $67 per barrel, unit kerosene costs could continue to rise if prices remain higher, the company noted.
It also expects EU environmental taxes to increase by 300 million euros this year, reaching around 1.4 billion euros, "making air transport in the EU even less competitive."
Ryanair shares, listed in Dublin, fell by about 4% in Monday morning trading. Ryanair shares have lost more than a quarter of their value since the beginning of the year.
T.D.