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
I don’t know about Ryanair, but easyjet’s target profit per flight is around 1000€.
Low cost airline also make bank on last minute business flights. You might pay 30€ for your flight, but business Joe that needs to go to London tomorrow is going to be paying 300€ for a seat next to you.
In really simple terms: It’s expensive to own an airplane for 1 day, and that cost doesn’t change if it’s flown more or less. Ryanair flies more trips per day (by reducing turnaround time) to spread the 1 day cost more thinly.
Ryanair also:
– Charges extra for everything, so even if the price of a flight is low they know the avg passenger will pay them much more.
– Charges a lot for last minute flights
– Reduces advertising costs with guerrilla marketing — eg, by offering a few flights for 1 cent… which creates buzz and promotional value. And by the CEO saying outlandish things to get media attention.
– Reduces airport costs by landing at cheap, obscure airports while claiming a flight is to a city that may be 80+ km from that airport.
– Is better insulated from recessions. If passengers have less money they may cut back on $2,000 holidays, but they may still buy a cheap Ryanair flight as a way to make up for the loss of premium travel.
You are a handful that fly with a backpack.
I am also flying low cost, and just bought 2 tickets.
150 bucks round trip x2
But …
A flex ticket, add 50 bucks each, one additional 10 kg suitcase round trip 170 bucks (after all, the wifey must ).
That’s already double the price of the tickets.
Now…if you want designated seats, nothing special but just to sit together 30 bucks per person each leg, thats another 120 bucks, auto check in and other BS 80 bucks.
Want a soft drink on board? Another 4-5 bucks.
So you ask hiw they make money?!?!
I just booked a roundtrip to Puerto Rico.
The one way fare to San Juan via spirit would be like $50, adding the return flight would be $150. Add $35 for a carryon each way and the fare would have been $270. Roundtrip on Delta was $273.
Guys some of you are somewhat right but no one seems to have worked with these companies and a good portion of you is just guessing. These low cost airlines are basically a “CPA marketing affiliate” for governments, where the government pays them subsidiaries in order for them to bring customers over to them.
Yes, the add-ons, cheap tickets and massive amount of destinations help, but that’s not from where the main money comes in.
Countries want tourists, and tourism authorities gladly pay Ryanair for customers. If you ever tried to book a return trip within 24 hours, you saw that “there are no flights” and that you need to stay at least two nights at the destination. That means two hotel nights, two potential visits to the store, 4 potential restaurant meals. The longer you plan to stay, the cheaper the ticket will be.
An example, Malta spent over €20 million last year in budget airline subsidies. Google it if you don’t believe me.
Source: Worked with the Berlin tourism authority and the Maltese tourism authority
Low cost airlines rethought the entire airline industry.
In order to fully understand this, I think you need to grasp the history of the industry. When commercial flights emerged in the 50’s, it was a leisure activity as much as it was a mode of transportation. To board a flight was to take part of a modern marvel and get an experience very few people had had before! And it was expensive. Maybe not quite like visiting space, but only top earners could afford flying. And because of this clientele, the staff wore fancy uniforms, they served food and beverages, they took care of your luggage for you, etc.
In the 60’s and 70’s, incomes increased and airlines were able to cut costs somewhat due to increased competition and larger volumes. Flying certainly didn’t become a regular experience for average Joe, but it undoubtedly became more accessible. And the business benefits of airports and flying became apparent to many governments, many of which started their own state-run airlines to ensure their businessmen, politicians, etc could reach places like London, New York, Brussels and Frankfurt in a timely manner. But all these new airlines, state-run or not, more or less copied the business model of the first airlines, including the image of luxury and exlusivity.
In the 80’s and 90’s, a few entrepreneurs rethought that business model completely. The viewed flying as a mode of transport, in essence no different from taking a bus. So they started airlines that basically offered ”air buses”:
– they operated only the most economically viable airplanes
– they reduced staff and did away with fancy uniforms and cabin comfort
– they discouraged actions and behaviours that are unprofitable by slapping large fees on it, that sometimes even exceeded the ticket price. Stuff like bringing luggage, since handling luggage both takes time and costs money, not to mention that it’s easily lost and forces airlines to pay for extra transports.
– crucially, they often trafficked smaller airports where time slots are a lot cheaper. You might have to travel further to and from your flight, but it’ll still be a net gain for the traveler since the flight is that much cheaper.
Airlines flights between EU nations are subsidized to promote travel and economic growth.
https://stay-grounded.org/privileged-position-revealing-the-eus-web-of-aviation-subsidies
The motherfuckers make you pay a €55 fee per luggage item that you check in later than two hours before departure.
Just want to say that additionally, parcel transport is a non-inconsequential part of airline business nowadays.
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then they kill anyone that tries talking about it, this is actually an attempt at a selfdelete note
you know its true either way, anyone that disagrees with me are either a fool or one of the 80% dead internet theory demons or just bots
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