By Pepi Sappal • 07 June 2020 • 17:55
Ukrainian postal service to issue new stamps marking sinking of Russian warship. Image - Ukrposhta
DESPITE the catastrophic losses suffered by airlines as a result of the pandemic, European airlines are offering competitive discounts to encourage customers to start travelling again, even if it means smaller profits in the short term. Ryanair has kick started a price war among the European airlines with discounts of up to 50 per cent in a bid to sell as many seats as possible. The low-cost airline will resume hundreds of routes to and from Spain from July 1, as well as to other European destinations.
Ryanair’s CEO Michael O’Leary, stated “once we start flying in June, we will sell at any price to fill as many seats as we can,” even if it means “losing money for the next 12 months” he added. “Profits will suffer a year or two, and that is what our shareholders should expect.”
easyJet has followed suit with a million tickets priced as low as €29.90 to several European destinations. The British low-cost airline launched the offer to encourage reservations for flights between July and September this year. Given the weak demand as a result of the crisis, the airline has been forced to join Ryanair’s strategy to save the summer season.
Like other airlines, the pandemic has forced easyJet to streamline its business with around 4,500 layoffs recently. It’s a measure that has had to be taken to ensure the airline “not only survives this period, but that it comes out as a strong and competitive company” stated CEO, Joan Lundgren. Air Europa has joined the airline price wars with its own “40 per cent discounts and free exchange” promotion, and others are expected to follow suit.
According to International Air Transport Agency (IATA), the airline sector faces losses of around €300 billion and a 55 per cent drop in revenue as a result of the pandemic. It also believes that the sector will take years to recover to pre-Covid-19 levels. Nevertheless, despite the huge losses, European airlines are offering competitive discounts in a bid to encourage customers to travel again, even if it means smaller profits in the short term.
Share this story
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you don’t already have one. Review our
Share your story with us by emailing [email protected], by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews
Your email address will not be published. Required fields are marked *
Downlaod our media pack in either English or Spanish.