Travelers shouldn't expect the return of rock- bottom airfares before the swine flu strikes.
The average fare over the next five years will be 50, or $51.40, compared with an average of 40 last year, according to the boss of Ryanair.
He blamed the rise in ticket prices on soaring energy prices that have pushed up the cost of jet fuel by about two thirds over the last year.
Fuel is the largest cost for airlines and can be hard to predict. The tactic of hedging against increases by agreeing to buy fuel for a certain price can backfire if prices suddenly go down.
Despite the high rate of inflation giving consumers less money to spend, O'Leary still expects people to fly, but he believes they will choose cheaper airlines
People will trade down in their millions because I think they will become more price sensitive.
After two years of Covid-imposed restrictions, travelers are returning to the skies in large numbers, putting pressure on airports and airlines.
In July, the airline carried more passengers than in the same month last year, in planes that were 98% full. There were 142 million passengers in the first seven months of the year.
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