Ryanair says inflation can be beneficial for the airline
Ryanair CEO Michael O’Leary said Tuesday that the airline can benefit from inflation, as people will look for cheaper flight options among low-cost carriers.
“Inflation and recession are very good for our growth because people don’t stop flying, as the booking levels show, but they are much more price sensitive, O’Leary told a press conference in Lisbon, as reported by Expresso newspaper.
→ Ryanair reaches new passenger record in September.
He also argued that Portugal should eliminate the carbon tax that has been applied at Portuguese airports since 2021, as it is “a huge threat to the competitiveness of peripheral economies”.
Portugal is recording this year the highest inflation figures in the last 30 years: in September, the consumer price index (CPI) soared to 9.3%, four tenths higher than the rate recorded in August and the highest figure since October 1992, according to the Portuguese National Statistics Institute (INE).
The Irish airline, which has been operating since 2003 in the country, today unveiled growth plans for the next 5 years, which include investing more than €20 billion in new Boeing 737 aircraft by 2026 and increasing traffic to and from Portugal by 36%, and rising from 11 million to 15 million passengers per year by 2027.
It also explained that it plans to create more than 600 jobs for pilots, cabin crew, engineers and information technicians in Portugal through 2027 and a potential €50 million investment in a maintenance facility in Porto.
→ Ryanair announces new winter route between Cardiff and Faro.
However, O’Leary warned that the investments contemplated are conditional on certain aspects, such as obtaining more slots at Lisbon airport, the opening of a new airport near the capital (which still has no dates or location) and reversing the carbon tax.
According to the airline’s figures in Portugal provided by the consulting firm PwC, Ryanair contributes more than 2 billion euros per year to the economy, which amounts to more than 15 billion impact if the 20 years it has been operating in the country are analyzed.
The airline has carried more than 85 million passengers since 2003 to and from Portugal, contributes 80,000 jobs annually and operates 160 routes from 6 Portuguese airports, reported EFE.
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