Ryanair boss Michael O’Leary has said the era of ultra cheap air fares is over for the foreseeable future because of soaring fuel prices.
Speaking on BBC Radio 4, Mr O’Leary – who is group chief executive of Ryanair – said the trademark promotional 99c-€9.99 fares, which Ryanair largely built its reputation on, will probably not be seen again, at least for a number of years.
However, he said passenger demand for air travel will likely continue to recover and grow – and the likes of Ryanair and EasyJet will still probably be the main beneficiaries.
“There’s no doubt that at the lower end of the marketplace, our really cheap promotional fares – the €1 fares, the 99c fares, even the €9.99 – I think you will not see those fares for the next number of years,” Mr O’Leary said.
“We think people will continue to fly frequently. But I think people are going to become much more price sensitive and therefore my view of life is that people will trade down in their many millions,” he said.