(Bloomberg) -- Ryanair Holdings Plc expects lower fares and flash sales will be needed this winter to attract would-be fliers struggling with higher interest rates.
Europe’s biggest discount carrier expects pricing to continue to be down this winter after seeing a 5% year-over-year decline in average fares for the September quarter, Chief Executive Officer Michael O’Leary said Tuesday in an interview with Bloomberg TV. The airline plans to grow capacity by 8% this winter, though it’s too early to forecast demand levels, he said.
Demand for travel is slowing following a surge after the Covid-19 pandemic as high costs of living take a toll on household finances. In July, Ryanair cut its outlook for ticket prices in the crucial summer season and said fares will be “materially lower” as consumers grow more cautious.
O’Leary also reiterated his frustration with Boeing Co., which has struggled to ramp up production as it works to bolster quality controls following an accident in January. The outspoken executive said that while he hasn’t yet spoken to Kelly Ortberg, the planemaker’s new CEO, Boeing “badly need to step up and recover production.”
Ryanair may miss its annual target to carry 200 million passengers, depending on the extent of the delays in deliveries of Boeing’s 737 Max jets, O’Leary said. Delivery schedules for aircraft on order have been slipping, O’Leary said.
Boeing didn’t immediately respond to a request for comment.
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