Ryanair Holdings Plc senior executive Eddie Wilson said a new decree passed by the Italian government to reduce the impact of rising airfares this summer is illegal.
(Bloomberg) — Ryanair Holdings Plc senior executive Eddie Wilson said a new decree passed by the Italian government to reduce the impact of rising airfares this summer is illegal.
“It’s ridiculous, illegal and goes against free market laws,” Wilson, who is chief executive officer of Ryanair’s main unit, said in an interview with Ansa newswire. If the new package isn’t scrapped, “there’s going to be an impact on Ryanair operations in Italy.”
Prime Minister Giorgia Meloni’s cabinet earlier this week approved the airline measure alongside a controversial surprise tax on banks’ profits that roiled markets.
The airline initiative is designed to clamp down on carriers’ use of algorithms to set ticket prices — particularly for connections from Italian hubs to the islands of Sicily and Sardinia — in a bid to protect consumers against sudden price spikes.
Read More: Ryanair Touts Lower Fares to Fill Planes as Costs Bite
Renewed demand for summer travel following the ending of Covid-related restrictions has buoyed airlines, but inflationary pressure could dent demand in coming months.
Dublin-based Ryanair has lowered its full-year forecast for traffic and said it may need to cut ticket prices to fill seats this winter as passengers become more cost-sensitive.
–With assistance from Daniele Lepido.
(Correct designation of executive in first paragraph)
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