Ryanair to cut fares by as much as 10pc, taking advantage of falling oil prices
Ryanair is to lower its fares by as much as 10pc next year as it takes advantage of falling oil prices, chief executive Michael O’Leary has said.
Speaking at the annual Dublin Chamber of Commerce lunch today the airline boss said he expects average fares will fall from about €47 to €42 in 2016. This is because the company is paying less for its fuel as oil prices plummet.
“Next year we have already bought forward our oil, we have saved about €430m for next year. in the old Ryanair I would have trousered that...but we’re not going to do that next year,” he quipped.
He said that the move was in tandem with the airline’s shift towards being nicer to customers, a policy which it has expanded since the rollout of its ‘Always Getting Better’ customer service initiative.
“As part of our Always Getting Better programme and being nicer [to customers] we are going to use that to lower our prices. Those kind of oil savings will enable us to lower our fares by about 10pc across the board next year.
“I expect that €47 average fare to be €42, and if we pass on those savings we will have even fewer competitors at the end of the cycle.”