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Ryanair discounts impacting European airlines profitability

Ryanair, which is continuously offering cheap flights to its customers at highly discounted rates, has started impacting the profitability of European airlines as has been recently alleged by its Irish rival Aer Lingus.

Aer Lingus said that due to heavy discounting by Ryanair the profitability of European airlines is going to be squeezed in coming months.

Aer Lingus has already started facing the heat and is ahead to cut its profit forecast for the year. The airline said that it is into the process of introducing “aggressive” pricing to maintain volumes amid indications of a weak demand in the autumn.

Ryanair currently flies more international scheduled passengers than any other European airline. It is believed that Ryanair is presently selling tickets at far lower rates on some routes.

European carriers are simultaneously in the midst of a price war as well as battling high fuel costs and weak consumer confidence.

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