Continued from page 48 It also suggested: “APD


contributes to mitigating the environmental impact of air travel by charging a duty on air passengers leaving from UK airports.” The government likewise


rejected a call to copy Singapore’s plan for a 1% SAF levy on flights from next year. Three out of five


respondents (58%) agreed with a levy on fuel suppliers. Just 14 disagreed, noting the costs “will be passed down to airlines and consumers, impacting the competitiveness of UK aviation” and come “in addition to APD increases”, new ETS charges, airport business rates and “cost of meeting the SAF Mandate”. The government explained:


“The revenue certainty mechanism is intended to provide first-of-a-kind UK SAF projects with a guaranteed price for their SAF over a defined period.” This ‘Guaranteed Strike Price’ (GSP) will be similar to the ‘Contracts for Difference’ already in place for renewable energy production. It suggested: “The cost per


passenger is likely to be limited and in line with the usual market variation of ticket prices.” The government promised


“further engagement” on design of the levy and pledged to “continuously monitor the impacts”. The UK SAF Mandate came


into force in January requiring SAF comprises 2% of aviation fuel on UK-departing flights this year and 10% by 2030. The SAF Bill introduced


last week will provide powers to deliver the revenue mechanism, which is expected to be in place by the end of 2026.


Tui boss unfazed by rival’s ‘growth’ in market share


Tui denied losing UK market share last week despite holding its tour operator capacity flat for this summer. Speaking as Tui reported results


for the three months to March, chief executive Sebastian Ebel insisted: “I assume we’re gaining market share [in the UK].”


Analysts suggested Tui had lost


UK market share after On the Beach reported a 13% increase in sales year on year in the three months to March and an 18% increase “in the last five to six weeks”. Ebel said he “almost expected”


the analysts’ reaction. But he argued: “The percentage of growth with us is bigger with our dynamic packaging. We focus on margins and growth in dynamic packaging.” He said Tui was unaffected by any


hesitancy to book among families or at the lower end of the market, saying: “Tui is in the upper market,


Sebastian Ebel


and we see resilient demand. It may be the lower end of the family market could be more challenging.” Tui reported a €306 million loss


for the three months to March and a half-year loss of €392 million.


Ryanair posts profits fall despite 9% rise in traffic


Ian Taylor


Ryanair Group chief executive Michael O’Leary described the overseas holiday market as “a niche we’ll only really be interested in when we’re no longer growing aggressively” on Monday. Reporting a €1.6 billion profit for the 12 months to March, O’Leary hailed the success of Ryanair sales agreements with a host of online travel agencies (OTAs) since early 2024, including loveholidays and On the Beach as well as Tui. Asked whether Ryanair intends


to move into the holiday market, O’Leary did not rule it out but said: “It can only come when we’re not focused on aggressively growing passenger numbers each year.” He said: “We’re very pleased


with our OTA deals, as are the OTAs. We’re perfectly content to let them monetise holidays. I don’t want to waste time running around the Canaries trying to buy hotel rooms.


46 22 MAY 2025


will grow “by just 3% to 206 million passengers due to delayed Boeing [aircraft] deliveries”. The carrier’s post-tax profit


Ryanair’s average fare fell 7% in year to March


I want to leave the heavy lifting to them. I’m not dissing easyJet holidays or Jet2holidays, but it’s a niche we’ll only really be interested in when we’re no longer growing aggressively.” He added: “If there are markets the


OTAs want to break into and to work with us on, we’re happy with that.” O’Leary reported “robust demand


across our network” this summer, with “peak fares trending modestly ahead” of the same period a year ago. Despite the “strong” demand,


Ryanair forecasts its traffic for the current financial year to March 2026


of €1.6 billion was down from €1.92 billion the previous year despite a 9% increase in passenger numbers to a record 200 million due to a 7% fall in average fare. Ryanair’s revenue rose 4% year on


year to €13.95 billion, with ancillary revenue up 10% in total and 1% per passenger despite the lower fares. Italy was Ryanair’s biggest market


by revenue in the year at almost €3 billion, followed by Spain at €2.8 billion and the UK at €2 billion. O’Leary noted Ryanair added 160


new routes for this summer but said: “We expect European short-haul capacity to remain constrained for the next few years as many of Europe’s Airbus operators are still working through Pratt & Whitney engine repairs, the big two manufacturers are well behind on aircraft deliveries, and EU airline consolidation continues.”


travelweekly.co.uk


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