A lack of capacity, coupled with high demand for travel, will likely lead to another big hike in airfares this summer, according to Ryanair.
It seems that as soon as one bill goes down, another goes up.
Over the past few months we’ve seen big cuts in the cost of gas and electricity, albeit from record high levels.
But at the same time we’ve seen big hikes in the cost of private health insurance.
And now Ryanair is warning that the cost of air travel this summer is likely to increase significantly too.
So what should holiday goers expect to pay?
Prices going up
Ryanair Group Chief Executive Michael O'Leary has predicted that airfares will be up to 10% more expensive on average this summer compared with the same period last year.
And this comes on the back of a big increase in the price of flights over the past few years.
Last year Ryanair increased its fares by an average of 17%, according to O’Leary. And according to the CSO, airfares have risen by around 30% since 2016.
This means that prices for flights this summer could be on average around 40% more expensive than what holiday goers were used to pre Covid.
Why?
The inability (and in some cases refusal) of airlines to add capacity post Covid means many are still operating a reduced service.
The Ukraine war and the conflict in the Middle East have also closed parts of airspace in Europe, leading to overcrowding on certain routes and a consequent reduction in capacity by airlines.
Lingering supply chain issues also mean that the manufacture and delivery of new aircraft has been curtailed. There have also been major concerns raised around the quality control for new Boeing aircraft, which has impacted on the delivery of new aircraft for many airlines which had orders with the manufacturer.
For example, Ryanair has a contract with Boeing for the delivery of 57 new planes by the end of March but it expects to receive only around 40 to 45 by then.
All this, coupled with high demand as consumers increasingly prioritise experiences and travel over other spend, has put big upward pressure on airfares over the past few years.
The days of super-low airfares are gone for now it seems.
Cut the cost of your holiday
Even if the cost of your flights will go up this summer, that doesn't mean you can’t still save money on your travels.
Booking well in advance, shopping around, and being flexible with your route and travel dates will help you cut the cost of your flights.
And we have lots of useful guides on bonkers.ie to help you cut the other costs of your holiday too.
If you're travelling outside the EU this summer, here are ways to cut the costs of your roaming charges.
And if you're travelling outside the Eurozone, here are ways to cut the costs of your foreign exchange fees.
Need travel insurance? You can now get that on bonkers.ie. Here are the main things to consider when buying a policy.
