(MENAFN) The era of ultra-cheap air travel is over, European low-cost carrier Ryanair told the BBC on Thursday.
“I don’t think there are going to be ten-euro (about $10) flights anymore because oil prices are significantly higher,” Ryanair’s chief executive, Michael O’Leary, said.
The average fare for the airline was reportedly €40 last year, but O'Leary predicted a price increase soon.
“We think that €40 needs to edge up towards maybe €50 over the next five years. So, the £35 average fare in the UK will rise to maybe £42 or £43,” he elaborated.
Ryanair is renowned for its flash sales with extremely low prices, but O'Leary pointed out that these prices are now believed to be untenable given the current circumstances.
“There’s no doubt that at the lower end of the marketplace, our really cheap promotional fares, the €1 fares, the €0.99 fares, even the €9.99 fares, I think you will not see those fares for the next number of years.”
The Ryanair chief stated that he anticipates customers to seek out lower-cost options rather than cut back on flights. “We think people will continue to fly frequently. But I think people are going to become much more price sensitive and therefore my view of life is that people will trade down in their many millions.”
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