Ryanair fares to rise

The low-cost airline, Ryanair, has warned its passengers that air fares will have to increase in the future if they are to meet the predicted profit targets. The news was released by the chief financial officer, Howard Millar, after he revealed the third quarter losses of €11 million, a lot better than the previous year of €102 million loss.

Investors in the carrier were said to be please at the revised forecast for the year after some of their rival airlines had not made it into 2010. The collapse of FlyGlobeSpan and German budget airline, Blue Wings, has helped made things look at little more rosy for Irish carrier. The last quarter also see a rise of 14 per cent in passenger numbers, which would have had a positive impact on profits if flights were not 12 per cent cheaper than the same time last year.

The last 12 months have been difficult in all travel related businesses and many airlines have struggled with making a profit. A vast majority of would-be flyers looked for the best deals that they could get and often budget carriers were the safest bet. The larger airlines have watched with envy this year as Ryanair and Easyjet have continued to post great numbers of passengers and yearly profit forecasts. This has tempted more and more airlines into the added charges that you find on low-cost carriers. British Airways cancelled their free sports equipment carriage and made it part of the checked luggage allowance. Other have decided to scrap meals and other luxuries on short-haul flights in an effort to save more money.