Ryanair’s O’Leary Says Air Fares Will Rise for Next 5 Years: FT

Michael O’LearyPhotographer: Valeria Mongelli/Bloomberg
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Air fares are “too cheap” and will need to rise for the next five years for airlines to remain competitive, Ryanair Chief Executive Officer Michael O’Leary told the Financial Times in an interviewBloomberg Terminal.

Ryanair under O’Leary pioneered the era of budget travel, offering cheap tickets that made air travel accessible to millions, while putting pressure on the profit margins of full-service carriers. Now rising oil prices and higher environmental charges would push the cost of an average Ryanair ticket to between 50 and 60 euros ($52 to $62) from 40 euros, he told the newspaper.