[foot-loose]

Ryanair set for £8 flights to US

Budget airline Ryanair is to offer flights to the US for eight pounds, by buying planes from struggling rivals.

The plan will be revealed when chief executive Michael O'Leary announces the firm's quarterly results on Monday.

"Economy class will be very cheap, around 10 euros, but our business class will be very expensive," he said in a newspaper interview.

Ryanair's second quarter profits are expected to fall, due to higher fuel prices and its decision to cut fares.

Mr O'Leary is expected to announce plans to buy more than 50 extra aircraft, as part of plans to beat the recession by undercutting more expensive rivals.

"We'll just have to keep flying more aircraft, opening up more routes and offering people more cheap flights," Mr O'Leary said.

Profits down

The flights - which could begin by the end of next year - would be available for those booking early. Passengers would pay airport taxes on top of the fares.

The transatlantic flights are likely to go from Stansted and Dublin airports to New York, Florida, Los Angeles, San Francisco and Boston.

Meanwhile, it is expected that Ryanair's quarterly profits will drop significantly.

Royal Bank of Scotland is forecasting net earnings of 145m euros (£115m; $184m) for Ryanair for the second quarter, down from 260m euros last year.

While the oil price has come down lately, analysts say Ryanair is still suffering because it insured against changing fuel costs at too high a price.

Mr O'Leary has said he expected the airline to make a profit for the full year as long as oil stays below $70 a barrel.

http://news.bbc.co.uk/1/hi/business/7705169.stm



It costs me about £15 for a train to Edinburgh! I know they will be chucking a load of charges / taxes / fees on there, but even so... £8.00???

[Andy B]

For the world cup my mate flew to Germany for 1p! There are always stupid deals going on these days. It won't be forever though surely? They can't make a profit that way can they?

[foot-loose]

Aye - but Germany is just over there ----->.

<-------------------------------Americanland is WAAAAY over there!

[MK Chris]

I don't see how it's possibly feasible on a long term basis without (as Foot-loose says) loads of hidden charges.

Ryan Air seem to like their gimmicks though.

[ladbroke]

I'm no economic genius, but surely this is just a loss leader. No they can't possibly make a profit, but in terms of PR they want peoples perception of them to be cheap. They'll endeavour to make their profit from other more lucrative routes, whilst playing a fanfare about their 'cheap' prices.

[Boboff]

It does work though, as when you really need to travel it's last minute, and they charge you lots then. They work on the basis of breaking even if they sell 80 to 90% of the seat allocation, so they sell the first 10% really cheap to get Bums on seats and encourage people to look, they cover costs with the next 80%, then make a killing on the last 10%, if they sell them. It is good as the market demands really what you pay, if you want to take a cheap flight, chances are it will be a really bad time of day.

[kendra k]

Boboff has it! I wonder if the flights just go to the east coast, or all the way west as well?

[S4B]

Oooooooohhhhhhhhhh! Sunny!!! Whaddya think?!

[Andy B]

It only says flights TO the States cost £8 if you look at the small print a ticket to here costs £8000. That'll keep them out!

[foot-loose]

I thought you had to be up early, ya knob cheese?

[Andy B]

I am up early dickwad!

[foot-loose]

... nae luck.

[Sunny So Cal]

Oooooooohhhhhhhhhh! Sunny!!! Whaddya think?!

I think the fares will have some exorbitant fees tagged on them or that they'll have 10 at that price and then the rest go up from there. If you mean what do I think of you spending 8 quid to come here, find out how much it costs to GO BACK. There's no mention of return ticket costs and much as I like you, at some point, you'll have to leave