Ryanair has announced a cut of its prices

HVG.hu writes, based on the report of the Independent, that the Irish airline made a statement regarding the changes of their prices. In the latest business year (that ended on March 31) the company managed to make 43% more profits than previously, and Ryanair CEO told, in a video, that they aim to win the “fare war”.

Ryanair is planning to cut fares by 7% in 2016, but in the winter months the decrease may even become 10-12% in order to defeat the low-priced offers of other companies. According to independent.co.uk, Michael O’ Leary, CEO of the airline company said that “If there is a fare war in Europe, then Ryanair will be the winner.”

Thanks to the lower fuel prices the profits could majorly rise, therefore, Ryanair made 43% more profits than in the previous year. To the end of March their profit was 1.2 million EUR this year. HVG writes that, even though there were many cancellations, the airline company’s passenger number could increase by 9%, which meant that 116 million passengers traveled by their planes.

Moreover, the revenues also grew by 16%, thus, this time the sum was 6.5 billion EUR. Additionally, independent writes that “Ryanair uses a load factor/yield passive model that means that it decreases prices in order to keep its planes full”. Hence, within the past two years this factor, indicating the loadedness of the planes, has also increased by 10% to 93%.

Copy editor: bm

Source: hvg.hu, independent.co.uk