Ryanair’s Michael O’Leary is considering copying rival EasyJet by launching package holidays as rock-bottom fares fail to draw profits

Ryanair and EasyJet have one thing in common: they both offer dead cheap flights across Europe. But that’s as far as the similarities go. Their earnings in recent months have diverged dramatically—the Dublin-based Ryanair suffered a 46% profit drop in the three months to June 30, while its British rival saw profits jump 16% during the same period. Now, Ryanair wants to up its game, even if that means expanding its business into an area it previously shunned, but that’s proven to be a success for its rival. The low-cost carrier is considering offering vacation bundles along with flights in the hope that this will help Ryanair reverse its fortunes. “I wouldn’t rule out setting up a holidays division,” Ryanair CEO Michael O’Leary told The Telegraph in an interview. “The holiday product is probably a reasonable way of charging higher fares and yields and for wrapping it into a package.” Ryanair is Europe’s largest airline, competing in a market marred by “frugal” customers, holiday poverty, and more. That’s caused its earnings to take a beating during its peak summer months, typically a lucrative time for the likes of Ryanair. The company previously said it would not explore package holidays. It has even been at loggerheads with travel platforms that offer similar services at supposed markups.<br/>