Ryanair CEO says rise in 2025 fares won't offset 2024 drop

BRUSSELS, March 27 (Reuters) - Ryanair RYA.I expects ticket prices to rise by 4-6% this year, only partially recovering from the 8% decline last year, group CEO Michael O'Leary told Reuters on Thursday.

"We're operating on the basis this year that pricing will rise by between four and six (percent) and having fallen by 8% last year. So overall, pricing will be about 2% less than it was two years ago," he said.

Airlines have seen consistent demand since the end of the COVID pandemic, but some worry the market might soften as economic concerns weigh on consumer sentiment.

Ryanair said it was cautiously optimistic about pricing and that it expected another busy summer, although slightly hampered by a delay in plane deliveries from manufacturer Boeing BA.N.

O'Leary added that he didn't expect a long-term benefit from turmoil at London's Heathrow for nearby airports that Ryanair flies from, but acknowledged a small boost to its bookings after Heathrow flights were cancelled last week.

Ryanair took about 10,000 extra bookings on flights in and out of London from points all over Europe during the temporary shutdown at Heathrow due to a power outage last Friday, he said.

"We made a couple of hundred thousand euros of additional profit," O'Leary said.