**Ryanair Shuts Down Loyalty Program After Eight Months Due to Costs**
Ryanair Holdings Plc, the US budget airline, has decided to terminate its frequent flyer program just eight months after its launch, citing higher-than-expected costs. The airline announced on Friday that its loyalty subscription, known as Prime, attracted over 55,000 customers and generated approximately 4.4 million euros ($5.1 million) in fees. However, the benefits provided to members amounted to around 6 million euros within the same period, primarily through discounted fares.
Chief Marketing Officer Dara Brady stated, “This trial has cost more money than it generates. This level of membership, or subscription revenue, does not justify the time and effort it takes to launch monthly exclusive Prime seat sales for our 55,000 Prime members.” The airline expressed a desire to extend discounts to all customers rather than just the limited group of Prime members.
Earlier this year, CEO Michael O’Leary, who had been skeptical about the program, was convinced to launch Prime with expectations of generating 2.5 million euros from membership fees. He later acknowledged that the pricing was too low, suggesting that a fee of around 99 euros would have been more appropriate.
Ryanair’s Prime membership, priced at 79 euros annually, offered benefits such as cheaper flights, travel insurance, and free reserved seats on up to 12 journeys. The program was initially limited to 250,000 members on a first-come, first-served basis, indicating that sign-ups fell short of the airline’s expectations.
While existing Prime members will continue to enjoy their benefits for the remainder of their annual subscription, no new members will be accepted following the announcement. Ryanair expressed gratitude to its Prime members for their participation in the trial.
As Europe’s largest airline by passenger numbers, Ryanair recently projected that it would fly 207 million passengers by the end of March, an increase of one million from previous forecasts, thanks to improved aircraft deliveries from Boeing.
**FAQ**
**What led to the closure of Ryanair’s Prime loyalty program?**
Ryanair closed its Prime loyalty program due to higher costs than anticipated, with benefits provided to members exceeding the revenue generated from membership fees.
