This week Ryanair gave a grim forecast of difficult times ahead. Load factors are down (2% last month) and profit forecasts are at best showing zero growth. As a result the airline's share price has taken a sharp downturn. Ryanair's boss, Michael O'Leary blames higher taxes and airport charges, rising interest rates and passenger frustration with security delays. Easyjet reckons concern over the climate change issue is also a factor.
What does this mean for Jersey's tourism industry? We have plenty of low cost routes now, helped by Jersey Airport's aggressive approach to route development incentives. Airlines such as Thomsonfly like flying to Jersey because it offers a quick round trip to fill mid-day slots and a low fare entry point for their marketing. But ultimately if the consumer sees beyond the hook of a cheap air fare, it will result in routes disappearing.