Ryanair expect their average fare to fall by 7% this year as they plan to cut prices to boost market share amid intensifying competition.
Ryanair CEO, Michael O’Leary, vowed to take market share from rival airlines as cheaper fuel helped the budget airline’s 43% rise in net profit to €1.2bn.
The low cost carrier will reduce prices primarily because of the extra supply of seats. Last year, it launched seven new bases and more than 100 new routes. The airline has also taken delivery of 41 new Boeing 737s in the last year with a further 52 arriving this year, as they look to grow passenger numbers to more than 100m.
According to the International Air Transport Association, fares to and from European destinations had already fallen 11.4% in the first three months of 2016 compared with the same period last year. The sharp drop in the price of oil, which has fallen 70% since June 2014, has made it easier for airlines to cut flight costs. Analysts predict that rival airlines would be forced to cut their fares in response.
“If there is a fare war in Europe, then Ryanair will be the winner,” Mr O’Leary said.
[adblockingdetector id="638efa67113bf"]