Ryanair sees fares growing as On the Beach flags stubborn travel demand
Published: 12:55 25 Feb 2025 GMT
Ryanair Holdings PLC has said fares will likely grow over the coming year, following news from On the Beach Group PLC that consumers were still forking out for holidays.
Fares were seen climbing 4% to 6% ahead, chief executive Michael O’Leary said on Tuesday, after the airline faced a 10% drop last year, in part on disputes with travel agents.
He added delays in deliveries from Boeing Co were set to improve by summer 2026, following mounting issues that had left airlines grappling with a lack of supply.
On the Beach separately said earlier in the day that consumers were still prioritising holidays despite wider economic woes.
Alongside reiterating guidance, the online travel retailer flagged appetite for city breaks and said bookings for the coming summer had surged.
“Closer-to-departure package holiday bookings are an industry-wide trend in 2025,” Peel Hunt analysts noted in response, adding demand came despite the “cautious consumer”.
Shore Capital added On the Beach itself was well positioned to grow, including thanks to an “improved relationship with Ryanair” after last year’s disputes over third-party ticket sales.
On the Beach shares jumped 4.4% on Tuesday, as Ryanair ticked up 0.8%.
