How do low cost airlines, example being Ryanair, make such high profits yet sell flights for so cheap?

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I fly around Europe for €30-€100 per return flight without a checked bag. Yet Ryanair are one of the most profitable airlines in the world yet charging such cheap prices. Are other airlines just not as efficient as low cost airlines?

In: Economics

27 Answers

Anonymous 0 Comments

Imagine you go to the cinema and pay €10 for the seat, plus €5 extra to select your seat instead of having it assigned to you. Then you pay another €10 for snacks and €5 for a drink. You’re spending €30 all together, even though the ticket only costs €10. 

Then you go to a different cinema and pay €30 flat, with “free” snacks, drinks, and choice of seating. You’re spending the same amount, it’s just calculated differently. 

Now, if you go and really don’t spend any extra money – you don’t buy any snacks, you take any seat, and basically don’t care that you’re having a shittier experience – then it *is* cheaper to do it that way. But it’s only cheaper because you’re avoiding paying for stuff that makes the experience easier. 

(BTW this is the same thing with Spirit Airlines in the U.S. – if you hear people joke about Spirit Airlines in American media, now you know why)

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