Michael O’Leary says that Ryanair fares will be similar to last year as the airline is forced to stimulate forward bookings with lower prices. Ryanir have launched three 498-hour flash sales in recent weeks.
Travel agents report bookings have dropped by up to 20pc, a figure similar to recent reports by credit card spend monitors. Easyjet, Wizz and TUI also reported that the forward bookings have declined amid the uncertainty created by the US invasion of Iran on February 28.
Michael O’Leary shared: There’s undoubtedly a bit of weakness out there and we are having to do a little bit of price stimulation to keep volumes on target two, three, four months out. A lot of people are still waiting. They’ve been scared a bit by all the fuel shortage stories. The fuel shortage situation does seem to be improving but people are hesitant and not willing to make medium-term booking decisions.
“There’s definitely a trend we’ve seen through the last two months of close-in being stronger because people are making up their minds and just paying. The close in bookings for the next two or three weeks are very strong and pricing is strong.
Bookings are a bit softer out through June, July and August. We just closed April 90,000 passengers over budget. April was slightly weaker anyway because the first half of Easter moved into March. I think there’s a hesitancy still in June, July and August.
We’re not seeing massive weakness. In terms of our forward bookings. We’re running 0.2pc ahead for May, 0.1pc ahead of target for June and July, August, September are bang on target, but we’re having to open up a little bit [on price]in the last couple of weeks.
We’re stimulating with price but we’re not having to do big moves. This time last year we were kind of closing up a little bit every day. This year, out into June, July, August, we’re having to open up a little bit every day. But then close in, when people have to make decisions, is booking strongly and pricing up strongly. So as strong as ever.
