Ryanair is offering flights at just under one penny per mile flown in an apparent bid to grab as much as it can of the available demand for late summer and winter holidays.
Earlier this week, it was offering flights from the UK to Greece for £14.99 for a 1500-mile flight, and is offering other fares to Italy at £4.99 each. And that's not even for long-term buy-ahead, those are walk up and fly today fares, which are usually much higher than buy ahead.
Competitors British Airways cheapest Athens flight for the same day as Ryanair's is £85, while Easyjet is priced at £68. BA's fare includes a cabin baggage allowance up to 46kg; on Easyjet and Ryanair, baggage is extra.
And that is the key to Ryanair's long-term strategy: fill the plane and collect fees. Ryanair CEO long ago speculated on reaching a point where fare would be free and passengers would make it all up in fees. He'll need to do something like that now, since out of that £14.99, Ryanair will have to pay a £13 Air Passenger Duty as well as fees charged by the airport. The possible extras include seat assignments, priority boarding, extra bags, and more.
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