Last Update: 9:58 AM ET July 13, 2005
Ryanair bookings slip after bombings
LONDON (MarketWatch) - Bookings at low-fare airline Ryanair Holdings PLC were down nearly 10% in the aftermath of the London bombings, Chief Executive Michael O' Leary said Wednesday.
The Irish low-cost carrier, which normally takes about 100,000 reservations per day, reported that overall bookings slumped almost 10 % in the first four days following Thursday's bombings compared with the previous week.
But O'Leary told a conference in London said he was confident booking levels would return to normal by the weekend.
"This is not unusual. The same thing happened last when traffic dipped for a few days after Madrid. The bookings came back up to their usual level within a week," O' Leary said.
He added he doesn't foresee any medium-term consequences for London, though said the sector remains unpredictable.
"We don't know whether this will have more of a medium-term impact. All I can tell you is that it didn't happen with Madrid or Bali," he said.
Still, in order to boost tourism to London, Ryanair (UK:RYA: news, chart, profile) (RYAAY: news, chart, profile) announced it would release three million seats to the destination at a price of just 1 pound or 1 euro, plus taxes. Two million of the seats are inbound and one million of the seats are outbound.
"We think it's important we keep London flying. We must demonstrate that yes, London is perfectly safe," said O' Leary, who had flown to Gatwick before jumping on the express train into central London, to Victoria Station.
Meanwhile, easyJet PLC (UK:EZJ: news, chart, profile) declined to comment on the status of its bookings since the bombings.
"It's too early to tell what the long-term impact will be," a spokesman for the company said.
At the conference, Ryanair also announced the launch of eight new U.K. routes connecting mainly to the south of France and Eastern Europe.
But as it continues its expansion, the airline also said it would announce the closure of three to four routes at the end of August.
O' Leary said this happens either when loads aren't sufficient and therefore fares aren't viable, or when airports aren't meeting their turnaround targets. The closures will be effective Oct. 31.
Looking ahead, O'Leary reaffirmed the company's guidance for flat yields during the rest of the year to March 2006.
O'Leary also said he wouldn't consider fuel surcharges "as long as I live or breathe."
Cheers,
White Cap
