Ryanair starts price war
Ryanair has declared a price war on its no-frills rivals by launching its biggest ever seat sale.
The airline, which is now quoting all of its fares inclusive of taxes, is offering 10 million seats across Europe from just £10.
Around 3.5 million seats will be offered for £10, including taxes, with another 3.5 million for £15 and the rest for £20.
Ryanair believes the seat sale will help it reach its target of carrying more than 52 million customers this year compared with 42 million in 2006.
It also announced that if passengers find a cheaper fare on the same route with any other airline, it will pay double the difference between the two fares, even though it expects the move to cost the airline around £1 million.
Ryanair CEO Michael O’Leary accepted the moves would put downward pressure on both prices and profits but said it would help consumers and damage competitors.
His pledge came just hours after rival Easyjet vowed to slash its fares to fill seats due to falling passenger numbers.
EasyJet revealed a reduced winter loss, down 58% from £40 million to £17 million, on revenues up by 14% to £719 million.
It blamed the loss on higher taxes, rising interest rates and environmental concerns (see earlier story).
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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