Ryanair Expects 5% Drop in Winter Airfares

In the first half of 2024, economy international fares from Australia dropped by 13%, with July fares 5% lower than the previous year, boosting international ticket sales by 10%. Flight Centre's managing director Graham Turner views this fare drop positively, believing it will enhance travel affordability and growth into FY25. Meanwhile, Ryanair anticipates a continued slump in airfares, expecting a 5% decline throughout winter 2024-25, correlating with lower consumer spending and rising interest rates. CEO Michael O'Leary highlighted a rise in disruptive passenger behavior, attributed to increased alcohol and drug use, particularly on flights from popular destinations. Ryanair also faces operational challenges, including issues with the Boeing supply chain and calls for changes to UK Air Passenger Duty to stimulate growth. As airlines navigate fluctuating fares and passenger behavior, the travel landscape remains dynamic with a focus on affordability and safety.