Economics works, eh?

Budget airline Ryanair has seen passenger numbers rise by a fifth as it cut prices to boost bookings in the wake of recent terrorist attacks.

5 thoughts on “Economics works, eh?”

  1. Currently on my travels in Istanbul. Seems pretty dead compared to what most restaurant owners are used to. Some are struggling quite a bit. Lots of bargains to be had as the tourist shops in the bazaar still have to cover costs and are less interested in profit than just weathering the storm. Most expect it to be back to normal April/May.

  2. How can an airline that claims a load factor of 83% claim an increase in passenger numbers by one fifth? Unless a lot of that is seasonal effects or explained by expansion, or other things, and not by reduced prices?

  3. @bloke in Germany
    Never doubt ryanairs ability to squeeze more people into ever smaller spaces and to find surcharges to recoup the headline price drop

  4. BiG – load factors overall may be 83% but at this time of the year they will be significantly lower. Most airlines struggle to make money over the winter period so anything to fill up those seats!

  5. If you start out at 83% and you increase it by a fifth of your current load (not of the total maximum load) then you end up with .83 x 1.2 or .996 or 99.6 percent. Seems unlikely, but its not actually impossible.

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