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Old 22nd Sep 2013, 21:33
  #1373 (permalink)  
Aerlingus231
 
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There is a balancing act on the fees, charge too high and people won't forget, hence regular ticket prices must go up to make for lost revenues, charge too little and you must raise ticket prices to make up lost revenues. Problem for Ryanair is that a large part of their revenues come from those fees, so much so that if you were to remove the fees all together, Ryanair would be loss making. The average ticket price multiplied by the number of passengers is less than total expenses of the airline, in other words it costs more to Ryanair to run services than they make just from ticket revenues alone. Not a great position to be in, but hey, it's worked so far.

Last edited by Aerlingus231; 22nd Sep 2013 at 21:35.
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