Ryanair boss sees UK winter demand weaker than Europe

LONDON, Sept 27 (Reuters) – Irish low-cost airline Ryanair (RYA.I) Chief Michael O’Leary said on Wednesday the UK’s air travel industry was weaker than Europe’s as British consumers struggle with high interest rates and a cost of living crisis.

“Europe itself is strong, Italian nationals are strong, Spanish nationals are strong, Eastern Europe is strong. I think the UK is probably a little bit weaker, with the exception of London,” he said, referring to demand. of air travel in each country. market.

“People in general are struggling here in the UK, interest rates are much higher, energy prices are higher, the economy is not in a good place here. Expect it to weaken in the future. winter,” he added at a press conference in London. in the airline’s winter schedule.

Ryanair, Europe’s largest airline by passenger numbers, is taking a cautious approach, O’Leary told reporters, even as he estimated current booking levels were 4% to 5% higher than a year ago. past.

He said “travel demand is not insatiable,” citing signs of a decline in consumer confidence.

Previously the director of British Airways owner IAG (ICAG.L)Luis Gallego said that travel demand was “very very strong“, except for the business sector, adding that the recovery of business demand in Spain is occurring faster than in Great Britain.

A rebound in travel following the damaging impact of pandemic restrictions on the sector helped Ryanair make €663 million in after-tax profits for the three months to June. exceeding market expectations.

O’Leary estimated Ryanair would carry 183.5 million passengers in the current financial year, compared to 149 million pre-COVID.

“We’re certainly seeing people booking earlier with slightly higher rates,” O’Leary said after a strong summer period.

“We are seeing very strong demand. What is unusual is that this is the second year in a row that we have seen very strong demand at very high prices. That cannot continue.”

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