Falling air fares could be good news for holidaymakers


Ever since the June referendum, the value of the pound has been fluctuating, leading to bad news for holidaymakers.
With the pound worth less against major currencies across the world, travellers have found that their holiday money is not stretching as far as it would have done at the beginning of the year.
However, there could finally be some good news for post referendum tourists.
The Ryanair boss, Michael O’Leary says he is expecting fares on the budget airline to drop by as much as 15 per cent over the winter as a result of continuing uncertainty over Brexit negotiations.
However, the airline chief has also warned that once Britain divorces Europe, he is expecting that the number of flights operating out of the UK will be reduced. At this point, he says fare prices will rise again.
Mr O’Leary has also hit out at confusion surrounding rules on airline ownership and routes which can be operating to and from the UK.
Ryanair says that its profits rose by seven per cent in the first half of this year and it is expecting increases in passenger numbers.
The firm has seen half-year profits of just over £1 billion to the year end September, which is up from £971 million over the same trading period the previous year.
However, Ryanair has slashed its forecasts following Britain’s decision to leave Europe as it gets to grips with the effect of struggling sterling. Airline bosses now say are expecting full-year figures of £1.17 billion to £1.22 billion in comparison to the up to £1.28 billion they had originally put in their financial forecasts.
However, while the airline may have reduced profit forecasts, there has been good news for passengers in the year up to September. The average cost of air fares dropped by 10 per cent, taking them down to £44.61 per passenger.
Mr O’Leary described this as “good news for customers, not so good news for shareholders”, but added that the latter would have to “learn to live with it for the foreseeable future”.
He said that passengers would enjoy lower fares for up to 18 months, but then could see fare hikes if a hard Brexit led to less capacity in the UK.
It is not the first time Mr O’Leary has spoken out about Brexit. He openly campaigned to Remain as even described pro-Brexit politicians as “puddings”.