European airlines signal surge in ticket prices is near peak

European airlines have signalled that a multiyear surge in ticket prices is peaking, casting the first doubts over a boom that took the industry from near bankruptcy during the coronavirus pandemic to record profits. Ryanair warned that fares across its network this summer would now be only flat or “modestly ahead” of last year, down from a previous forecast of a 10% increase. CE Michael O’Leary said that although overall demand remained “positive”, Europe’s largest low-cost carrier had already started cutting ticket prices to fill its planes. “It is a little bit surprising that pricing hasn’t been stronger, and we are not quite sure whether that is just consumer sentiment, or recessionary feel around Europe,” he said. “Consumers will want to travel . . . it is good news for consumers this summer, and shareholders’ expectations will have to realign a little bit,” O’Leary said. The caution from Ryanair follows results last week from rival easyJet, which also slightly softened its forecasts for ticket pricing this summer. After battling for survival during the pandemic, European airlines have ridden a wave of pent-up travel demand, with a shortage of aircraft giving the industry even more pricing power. Average airfares across Europe were between 20 and 30% higher over the summer of 2023 compared with 2019, according to EU data. Ryanair’s average fare rose 21% in its most recent financial year, to just under E50.<br/>