Ryanair has decided to pull the plug on its ‘Prime’ scheme, after an eight-month trial for the program revealed that the carrier was losing more money in fare discounts than it was gaining from the initial cost for guests to sign up to the initiative. Today marks the last day when those who are interested in signing up can do so, and, while no new members will be accepted thereafter, existing users will retain their benefits for almost a year.
Historically speaking, most low-cost carriers have not poured too much time or money into making loyalty schemes work, particularly in comparison to legacy operators that rely much more on the business of frequent flyers. However, in recent years, as the gap between these two kinds of airlines has begun to narrow, budget carriers have taken their loyalty offerings more seriously, with some US-based airlines also rolling out premium seating.
The End Of The Line
Earlier today, Ryanair circulated a short statement confirming that it is closing its ‘Prime’ membership scheme. After Friday, November 28, the program will no longer be accepting any new members, with the Irish low-cost giant citing a €1.6 million ($1.85 million) loss during the initiative’s initial eight-month trial. The carrier has managed to generate almost €4.5 million ($5.2 million) in signup fees, but these have been outweighed by other costs.
Indeed, despite more than 55,000 flyers taking Ryanair up on its membership offer, Dara Brady, its Chief Marketing Officer, explained that “this level of memberships, 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.” Brady added:
“We have signed up over 55,000 Prime members, generating over €4.4m in subscription fees. However, our Prime members have received over €6m in fare discounts, so this trial has cost more money than it generates.“
Existing Members Will Retain Their Benefits
For existing members of Ryanair’s ‘Prime’ program, a key point to be aware of is the fact that, while no further signups will be made possible after today, those who have already signed up to the scheme will retain their benefits. These will remain in place until October 2026, offering almost another year of discounts.
The cost of being a Ryanair ‘Prime’ member was €79 ($91.41) a year, with UK members facing the drawback of an unfavorable exchange rate and having to pay £79 ($104.36) a year for the privilege. By signing up, members got 12 free seat selections a year for their money, as well as access to travel insurance.
In terms of fare discounts, these came in the form of member-only sales, where those who had signed up to ‘Prime’ were able to bag cut-price tickets for even lower fares than those advertised to members of the general public. While Ryanair asserted that “members who fly 12 times per year [will] save up to 5 times the £79 ‘Prime’ subscription cost,” it would reportedly take just three flights in a year for members to make their money back.
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The Irish carrier has lodged an appeal with the European Commission.
Ryanair Has Gone Back & Forth On Its Loyalty Stance Over The Years
Over the years, Ryanair has had a turbulent relationship with the concept of loyalty schemes. In 2019, it touted a paid offering known as ‘Ryanair Choice,’ whereby members would pay a fixed annual price of either £199 or €199 to get free selection on standard seats, but not those with extra legroom or towards the front of the cabin. It would also have given users perks such as fast track and extra baggage, but no discounts on their tickets.
However, this concept remained just that, with Ryanair Group CEO Michael O’Leary telling Simple Flying in 2020, just before COVID-19 brought aviation to a standstill, that it was “a long way down on our list of development priorities.” Later on, in 2024, O’Leary made headlines by saying that passengers seeking loyalty benefits should “buy a dog,” with the eventual launch of Ryanair ‘Prime’ falling short of what was initially proposed.