European airline Ryanair is cutting airfares in the coming months to keep passengers flying following a series of terror attacks.
Ryanair CEO Michael O’Leary spoke CNNMoney that attacks in Brussels and Paris, combined with worries that terrorists brought down EgyptAir flight 804 over the Mediterranean last week, may lead some potential travelers to stay home or find alternative ways to travel.
“[When] people become a little bit more reluctant, we roll out lower prices and more stimulatory airfares, and people respond by snapping up those cheap prices,” he told CNNMoney’s Nina dos Santos.
“We are lowering fares. We’ll continue to lower airfares and keep people flying, not just this summer but for the remainder of the year as well.”
Ryanair estimates that fares by March 2017 will decline by 7%. Travelers in autumn and winter are likely to experience the best-discounted deals.
Analysts agree with the company, believing that discounted fares will help increase demand by alleviating traveler fears over terrorist attacks.
“I think Ryanair’s strategy of lowering fares works twofold by both spurring demand from travelers and also by widening the gap between Ryanair fares and its competitors,” \David Holohan, chief investment officer at Merrion Capital Group, told CNNMoney.
The average Ryanair flight cost €46.67 ($52.33) in 2015-16.