Ryanair finally sets its sights on package holidays as budget airline battles to attract more tourists

Ryanair has set its sights on package holidays as the company battles to attract more tourists.

Michael O’Leary, the airline’s chief executive, has long been opposed to selling package holidays, saying it would be a distraction from the company’s main objective of dominating European short-haul travel. 

But Mr O’Leary has this week revealed he would review the situation once Ryanair has established as much growth as possible from its Boeing aircraft fleet expansion.

Speaking to The Telegraph, he said: ‘I wouldn’t rule out setting up a holidays division. 

‘The holiday product is probably a reasonable way of charging higher fares and yields and for wrapping it into a package.’

It comes after the airline reported in July that profits had slumped by almost 50 per cent this summer.

Ryanair is looking at a possible launch of package holidays as the company battles to attract more tourists (Stock photo) 

Price-savvy customers delayed booking summer holidays with the budget carrier saying this had contributed to the 46 per cent drop in its profits to €360m (£303m), compared with the previous year. 

Average plane fares fell by 15 per cent to €42 (£35) and Ryanair’s typical fare in June was €41.93, down from €49.07 the previous year.

Meanwhile, rivals easyJet and Jet2 have been reaping the rewards of package holidays this year, highlighting the value of a package offering for customers.

Mr O’Leary added accommodation in Spain, Italy and Greece had become more expensive, which might have pushed more people towards opting for holiday packages.

He told The Telegraph easyJet Holidays had been ‘reasonably successful’ since its relaunch in 2019 under chief executive Johan Lundgren.

However, the Ryanair boss said easyjet had been forced into the move because of its focus on airports such as London Gatwick and Paris Charles de Gaulle, where operating slots are costly and hard to come by. 

Mr O’Leary praised Jet2’s operations, but said ‘there is very little seat only or scheduled services’ and ‘they have no presence outside the UK’. 

Despite the slump in profits, passenger numbers for Ryanair rose 10 per cent to 55.5million, resulting in its overall revenues falling just one per cent to €363billion.

Passenger numbers are predicted to increase by 8 per cent this year.