Ryanair has halted its £79 Prime subscription scheme for new members due to unprofitability. The budget airline reported losses after paying out £5.26 million in discounts while receiving only £3.86 million in membership fees from approximately 55,000 subscribers. The decision comes just eight months after the scheme’s launch in March, which offered perks like free reserved seats and complimentary travel insurance.
The Prime subscription was designed with benefits aimed at frequent flyers. Ryanair claimed that members who took around a dozen flights annually could save up to £420, significantly exceeding the annual cost of the subscription. Despite initial enthusiasm, the airline limited the scheme to 250,000 members on a first-come, first-served basis, but only managed to attract 55,000 participants.
Ryanair’s Financial Overview
Dara Brady, Ryanair’s Chief Marketing Officer, acknowledged the scheme’s shortcomings, stating: “To date, we have signed up over 55,000 Prime members, generating over €4.4 million (£3.86 million) in subscription fees. However, our Prime members have received over €6 million (£5.26 million) in fare discounts, so this trial has cost more money than it generates.”
Brady further elaborated that the low membership numbers did not justify the resources required for exclusive monthly seat sales for Prime members. Current subscribers will continue to enjoy exclusive flight and seat savings until the conclusion of their 12-month memberships in October 2024.
Ryanair has also recently introduced a significant change to its boarding process. Beginning on November 12, passengers will be required to use digital boarding passes exclusively, eliminating the option to download and print physical passes. Travelers must utilize the digital boarding pass generated through the “myRyanair” app during the check-in process to board any of the airline’s flights.
Looking Ahead for Ryanair
With over 207 million passengers expected this year, Ryanair remains committed to offering the lowest fares in Europe. The airline’s focus will shift away from the Prime membership scheme and concentrate on providing competitive pricing for all customers.
As the airline navigates these challenges, it continues to adapt its services to meet the demands of a changing travel landscape. Ryanair’s recent decisions reflect the ongoing pressures airlines face in balancing customer loyalty programs with financial viability in an increasingly competitive market.
