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Eoghan Corry: Why Ryanair's prediction of 'higher airfares' may not take off

Travel expert Eoghan Corry says a prediction of higher airfares is not as clear as it seems. Ryan...
Jack Quann
Jack Quann

13.27 13 Sep 2021


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Eoghan Corry: Why Ryanair's prediction of 'higher airfares' may not take off


Jack Quann
Jack Quann

13.27 13 Sep 2021


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Travel expert Eoghan Corry says a prediction of higher airfares is not as clear as it seems.

Ryanair CEO Michael O'Leary has warned that prices will increase as passengers rush to holiday in Europe next summer.

He claims fares and the cost of hotels will rise, as demand for trips abroad outstrips the number of planned flights.

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But Eoghan told The Pat Kenny Show there is likely a tactical move behind this.

"It's based on this very clear premise that the airlines have lost an eye-watering amount of money, and they're going to have to get it back probably in the medium-term or some in the short-term.

"But it's going to be different for different countries and different markets.

"And every time Michael O'Leary goes to an interview or a microphone, you can assume that there's something tactical behind it.

"I suspect that when he's talking about airfares drifting back up, and he also talked about prices on the ground are going to raise to make the money back, he's also seeing what Ryanair are going to do in that environment.

"And it's unlikely Ryanair will be hiking up their own prices".

And Eoghan says competition is a key factor here.

"What we will see is withdrawal of some of the airlines from the different markets; and what we'll see is the different hotel pricing systems come under pressure.

"They will depend really - very often - on local factors, local recovery and also they will depend on how the consumer reacts.

"In theory all those big airlines - Lufthansa, Air France, British Airways - they've lost billions [and] they're going to have to get it back somehow.

"And some of them will be under pressure from people they went to for credit at the beginning of this crisis, including national governments.

"But Ryanair will probably use this - you know the old maxima 'Crisis is a terrible thing to waste' - to increase their market share.

"We're already seeing that happening: they've gone from 20% in Italy to over 33%, they've gone into Germany in a level that we haven't seen before.

"So while he's saying prices are drifting up, he is using price to increase Ryanair's market share".

Eoghan adds: "What that means to every listener is that we are not going to be paying the higher prices for our airfares that he's talked about this weekend when it comes to his own airline - whatever happens with the others.

"Price is driven by competition as well, so as competitors are burned off you will see prices drift up".

Main image: Ryanair CEO Michael O'Leary during a press conference on Air Berlin's bankruptcy and potential future in Berlin, Germany in August 2017. Picture by: Bernd von Jutrczenka/DPA/PA Images

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Air Fares Air France Air Travel British Airways Eoghan Corry Higher Prices Hotels Lufthansa Michael O'Leary Ryanair The Pat Kenny Show

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