Ryanair rakes in £548m a year from 'stealth costs'

[Mal]

Ryanair rakes in £500m on 'extra' charges... and they're raising bag charges again | Mail Online

Ryanair tops the European league for 'stealth charges', from credit card booking to the right to put luggage in the hold.

A study by U.S. experts reveals the total raised by the budget airline through so-called 'ancillary revenue' soared by 73 per cent between 2006 and 2008 to hit £548million a year.

 

[Jeffrey O'Neill]

I suppose as long as they're upfront about there's nothing wrong with it.

Component pricing does allow the cheaper fares for those not wanting the extras.

 

[samh004]

Great way to make a profit.

 

[harvyk]

and who said LCC's are cheaper?

This is why I like the so called "full service" airlines. I pay an amount for everything. I don't get hit with "stealth costs" for services which I would consider a basic part of flying (such as check in)

 

[anat0l]

I wonder how much of their revenue does that GBP 548m make up?

I think it's a bit riot how Ryanair charge fees for things that you cannot avoid, like check-in, i.e. if you OLCI it's a fee; if you SSCI it's a fee; you can't counter check and I'm not sure if dropping a bag itself (apart from the fee for carrying a checked bag) generates a fee!

Suffice to say, though, Ryanair still have a considerable customer and revenue base, so they're going to be here for a long time to come. Their coffers were probably consolidated considerably due to the recent GFC. I think it's odd how Ryanair are able to virtually hold up airports by the collar to negotiate aggressive cheaper landing fees etc.

 

[harvyk]

I don't. They are not afraid to walk away from any airport in their network if they don't like the agreement.

 

[anat0l]

I don't. They are not afraid to walk away from any airport in their network if they don't like the agreement.

So could any other airline for that matter. But, they don't. Most try and negotiate and cop the lowest that they can.

Something has got to be making airports want Ryanair to serve them. I guess now it's relatively simple, i.e. they are the largest carrying LCC in intra-Europe. Difficult to say 'no' to that.

 

[harvyk]

So could any other airline for that matter. But, they don't. Most try and negotiate and cop the lowest that they can.

Something has got to be making airports want Ryanair to serve them. I guess now it's relatively simple, i.e. they are the largest carrying LCC in intra-Europe. Difficult to say 'no' to that.

I know any airline could threaten, but they usually don't. Also your right, being the largest LCC in europe gives them a lot of power. Ryanair have also typically picked secondary airports, which need as much business as they can. So to lose someone as big as Ryanair in this day and age would not be a good thing for the survival of the airport (and it's shops)