Air fares set to be "dramatically higher" next year, says Ryanair boss 2 weeks ago

Air fares set to be "dramatically higher" next year, says Ryanair boss

The age-old story of supply and demand looks set to play a major role in European travel in 2022.

Michael O'Leary has warned that the cost of air travel looks set to "dramatically" increase within the next year.

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The Ryanair supremo said that he anticipates a major influx of tourists throughout Europe in the summer of 2022, with the knock-on effect of huge demand coinciding with fewer available flights leading to increased prices for both air travel and hotels.

"I think there will be a dramatic recovery in holiday tourism within Europe next year," said O'Leary while in conversation with the Sunday Times.

"And the reason why I think prices will be dramatically higher is that there's less capacity," he continued.

"Take out Thomas Cook (six million seats), Flybe (eight million seats), Norwegian (nearly 24 million seats) - Alitalia's reducing its fleet by 40%. There is going to be about 20% less short-haul capacity in Europe in 2022 with a dramatic recovery in demand."

As for plans for his own airline, O'Leary said that Ryanair prices will be cut in order to "grab market share everywhere".