The largest airline to fly out of East Midlands Airport has indicated that it is to cut fares on some of its routes.
Budget carrier Ryanair has said that it could reduce fares by as much as eight per cent in the next few months because of competition from rival operators.
The airline, which this summer is operating 37 routes from East Midlands, made the comments as it reported its latest quarterly results.
They showed that in the three months to June 30, pre-tax profits grew by 55% to 397 euros (£356 million) helped by a strong Easter. Sales were also up 13% to 1.68 billion euros.
The airline said it expected fares to fall by five per cent in the six months to the end of September and by eight per cent in the six months to the end of March 2018.
Ryanair boss Michael O’Leary
Chief executive Michael O’Leary said: “We expect the pricing environment to remain very competitive.”
Ryanair also repeated warnings of major flight disruptions between the UK and Europe if Brexit talks fail to agree a bi-lateral deal on flights. The airline has warned it may cancel flights and move operations abroad if there is no agreement well in advance of Brexit.
Meanwhile, East Midlands Airport has welcomed a government proposal to make best use of existing runway capacity across the UK to improve global connectivity and provide more choice for passengers.
The commitment is a key part of the Government’s new aviation plans to boost economic growth, connectivity and skills and follows the Airports Commission recommendations in 2015 on the need to make full use of existing airport capacity in the UK while a third runway at Heathrow is built.
East Midlands Airport is aiming to double its capacity over the next decade
East Midlands Airport is experiencing significant passenger growth and is expected to have its busiest summer on record this year. The airport is also the UK’s largest pure freight airport and one of the world’s key aviation cargo centres.
The airport plans to double the number of passengers using the airport over the next 10 years to 10 million and triple the amount of cargo handled at the airport to a million tonnes. This growth is expected to boost employment on the airport site to 14,000 people and deliver £2.4 billion to the local economy.
Andy Cliffe, managing director at East Midlands Airport, said: “East Midlands Airport is critical in supporting regional economic growth and increasing the UK’s global competitiveness.
“Our passenger numbers continue to rise with this summer expected to be our busiest ever, this growth is being driven by airlines providing more routes and capacity as well as more customers using our existing services.
“Making the most of our existing capacity is the right approach for government to take and will deliver jobs, investment and economic growth across the East Midlands.”
Source: Derby Telegraph