Ryanair has issued a warning that it may need to reduce fares to compensate for declines in passenger numbers following the decision of certain online travel agents to stop selling the airline's flights on their platforms. This announcement immediately impacted the airline's share price. The development occurred as some holiday agencies, led by Booking.com, halted the sale of Ryanair flights in an ongoing dispute labelled by the carrier as a conflict with "online travel agent pirates."
Ryanair, under the leadership of CEO Michael O'Leary, 62, has been engaged in a battle with certain holiday booking companies that sell seats on the airline's services without permission, referring to the mark-up on fares as "price scams." Due to pressure from Ryanair, legal actions, and the attention of consumer protection agencies, Booking.com and others began removing Ryanair flights from their websites last month. While Ryanair appreciated this move, the airline admitted in a statement to stock markets that it would have a short-term impact on its operations and finances. As a result, Ryanair's Dublin-listed shares fell by 4.9%, or 94 cents, to €18.18.
Airline fare levels have experienced a decline in recent weeks as post-pandemic demand wanes amid economic challenges for consumers. Ryanair's recent passenger data revealed it transported 12.5 million passengers in December, marking a 9% year-on-year increase as the airline added more flights to meet demand.