Ryanair boss sees weaker UK winter demand than in Europe -September 27, 2023 at 03:31 pm EDT
* Ryanair boss O’Leary: travel demand not insatiable
* O’Leary says travellers booking earlier at higher fares
* He says booking levels 4%-5% higher year on year
LONDON, Sept 27 (Reuters) – Irish budget airline
Ryanair’s boss Michael O’Leary said on Wednesday the UK
air travel industry was weaker than Europe’s as British
consumers grapple with high interest rates and a cost-of-living
crisis.
“Europe itself is strong, Italian domestics are strong,
Spanish domestics are strong, Eastern Europe is strong. The UK I
think is probably a little bit weaker with the exception of
London,” he said, referring to the demand for air travel in each
market.
“People are generally struggling here in the UK, interest
rates are much higher, energy prices are higher, the economy is
not in a good place here. We would expect weakness in the
winter,” he added, speaking at a press conference in London on
the airline’s winter schedule.
Ryanair – Europe’s largest airline by passenger numbers – is
taking a cautious approach, O’Leary told reporters even as he
estimated current booking levels were around 4%-5% higher than
last year.
He said “demand for travel is not insatiable”, citing signs
of a dip in consumer confidence.
Earlier, the head of British Airways owner IAG,
Luis Gallego, said demand for travel was “very, very strong”,
except from the corporate sector, adding that the recovery of
corporate demand in Spain was happening faster than in Britain.
A rebound in travel following the damaging impact of
pandemic restrictions on the sector helped Ryanair make 663
million euros in after-tax profits for the three months to June,
beating market expectations.
O’Leary estimated Ryanair would carry 183.5 million
passengers in the current fiscal year, compared with 149 million
pre-COVID.
“We are certainly seeing people booking earlier at slightly
higher fares,” O’Leary said after a robust summer period.
“We’re seeing very strong demand. What’s unusual is this is
the second year in a row we’ve seen very strong demand at very
strong prices. That can’t continue.”
(Reporting by Muvija M; Editing by Alistair Smout, Kylie
MacLellan and Alison Williams)
