Travel Hub

Beware the February 14 markup on hotel rooms, train tickets and airfares, says Sophie Butler.

• Low-cost airline Ryanair says fares have to rise to meet targets
• Investors cheered by improved full-year outlook

Low-cost airline Ryanair has warned that fares will have to rise in the future if it is to meet its targets.

To achieve long-term profit targets, average fares would have to rise "somewhere down the line", chief financial officer Howard Millar told Reuters in an interview.

He was speaking after Ryanair posted a loss of €11m (£9.6m) in its third quarter, compared with a loss of €102m a year earlier as it cheered investors with an improved full-year outlook. Chief executive Michael O'Leary highlighted growing market share following the demise of rival airlines such as Germany's Blue Wings and said Ryanair was making more progress on cutting costs.

"Market conditions remain difficult, although the increasing pace of consolidation and closures among our competitors allied to Ryanair's continuing fleet expansion will lead to further market share gains this year in particular in Italy, Scandinavia Spain, and the UK," he added in a statement.

Third-quarter passenger numbers rose 14% to 16m but that was largely offset by a 12% decline in average fare.

O'Leary said Ryanair's yield performance was better than expected in the third quarter thanks to a better mix of new routes and bases. He predicted that trend was likely to continue into the final quarter, giving a better-than-expected performance for the year as a whole.

As a result, the airline increased its full-year net profit guidance to €275m from the lower end of the range of €200m to €300m previously forecast.

The news helped lift Ryanair's shares in Dublin, where they rose almost 5% to €3.50 shortly after the market opened.

• Low-cost airline Ryanair says fares have to rise to meet targets
• Investors cheered by improved full-year outlook

Low-cost airline Ryanair has warned that fares will have to rise in the future if it is to meet its targets.

To achieve long-term profit targets, average fares would have to rise "somewhere down the line", chief financial officer Howard Millar told Reuters in an interview.

He was speaking after Ryanair posted a loss of €11m (£9.6m) in its third quarter, compared with a loss of €102m a year earlier as it cheered investors with an improved full-year outlook. Chief executive Michael O'Leary highlighted growing market share following the demise of rival airlines such as Germany's Blue Wings and said Ryanair was making more progress on cutting costs.

"Market conditions remain difficult, although the increasing pace of consolidation and closures among our competitors allied to Ryanair's continuing fleet expansion will lead to further market share gains this year in particular in Italy, Scandinavia Spain, and the UK," he added in a statement.

Third-quarter passenger numbers rose 14% to 16m but that was largely offset by a 12% decline in average fare.

O'Leary said Ryanair's yield performance was better than expected in the third quarter thanks to a better mix of new routes and bases. He predicted that trend was likely to continue into the final quarter, giving a better-than-expected performance for the year as a whole.

As a result, the airline increased its full-year net profit guidance to €275m from the lower end of the range of €200m to €300m previously forecast.

The news helped lift Ryanair's shares in Dublin, where they rose almost 5% to €3.50 shortly after the market opened.

Information and advice of travelling to and around Portugal, from flights and rail travel to the best car hire firms.

Information and advice of travelling to and around Portugal, from flights and rail travel to the best car hire firms.

Fred Mawer highlights the best routes to Spain by air, rail and sea.

Fred Mawer highlights the best routes to Spain by air, rail and sea.

Chinese plan terminal in Tibet at 4,436 metres above sea level

China is to build the world's highest airport, at an altitude of 4,436 metres (14,500ft), in Tibet. The construction, at Nagqu, is likely to be a daunting task given the altitude and climate, with average temperatures staying below zero throughout the year.

The airport will be just 764 metres lower than the Mount Everest base camp on the Chinese side, which is located 5,200 metres above sea level.

Nagqu is in the centre of the Qinghai-Tibet plateau, about 186 miles from the Tibetan capital of Lhasa, with a population of 400,000. The airport will be the sixth in Tibet, and its addition means there will be one airport in each prefecture.

"The airport construction is planned for 2011 with a construction period of three years," said Xu Jian, director of the Nagqu committee of development and reform. "It is expected to cost 1.8bn yuan [£160m] and cover an area of 233-266 hectares."

China announced in 2008 that it would build 97 new airports by 2020, so that four-fifths of the population would be within a 90-minute drive of an airport.

"With the airport, Nagqu, which is also on the Qinghai-Tibet railway line, is expected to become the centre of an economic hub in the plateau region," said Tan Yongshou, commissioner of the prefecture.

Xu Bo, director of the Tibetan branch of the China civil aviation administration, added: " The objective for the next stage of development is to open direct air routes from Tibet to south Asian countries."

The new airport will beat the current altitude record holder – Bamda airport in Bangda, Qamdo, which, also in Tibet, sits at an elevation of 4,334 metres. That airport overtook the one at Lhasa, which has been built at a mere 3,600 metres.

The plans underline the astonishing speed with which China is unrolling ­ambitious infrastructure projects, often under challenging conditions, and, in particular, highlights the rapid development occurring in Tibet.

An extraordinary railway line connecting Tibet to the rest of China opened four years ago, and the government is constructing six new rail lines in and around the vast region, which is rich in natural resources.

Beijing argues that such changes are needed to boost growth and raise living standards.

But opponents claim that the developments are eroding the Tibetan way of life and damaging a fragile environment. They also believe that the economic benefits of the changes have been overstated.

There is particular concern about increased Han migration, made possible by the Qinghai-Tibet railway.

But the railway itself has been a feat of engineering. At its highest point, the Qinghai-Tibet line hits 5,072 metres – a height that is above the peak of any European mountain.

Need to escape the winter freeze? Airlines, hotels and holiday companies are offering amazing deals as the price wars kick off this January

Hotels

A night in Venice from £1.79pp
Kicking off the bargain bonanza is HostelBookers who launched its January sale today on hostels and budget hotels with up to 90% off selected accommodation. A night's stay at Ca Contarini in Venice now comes in at just £1.79pppn while Hotel Schild in Vienna is a very reasonable £32.23pppn – a saving of 60%. Bookings must be made between 7 and 31 January 2010 for travel before 31 March 2010.

Half-price hotels at Ebookers
Meanwhile Ebookers is focusing its sale on the UK and Ireland, offering up to 50% off selected hotels until 31 January. The site is offering a room at the four-star Grove Suites in Liverpool for £43.66.
 
Dublin Hilton for £54 a double
Also offering 50% off rooms is Hilton Worldwide. The hotel group is slashing prices on over 270 European and UK hotels if you book a weekend stay before 31 January (do you think all these deals purposely coincide with tax return day?) So if you're heading to Dublin you can now get a room-for-two at the Hilton there for £54 including breakfast as opposed to the usual price of £108. Just make sure your shoes look expensive.

Tenerife for £5.32pppn
Lowcostholidays.com are well in the running for the "best sale" title with their half-price offers. If you book before 30 April 2010 and travel between 3 January and 30 April you could grab accommodation at the three-star Aguamarina Golf in Tenerife for less than a cocktail - £5.32pppn. And deposits are low too – in some cases as little as £10pp. Just in case you can't commit too far in advance.

Holidays

Save £124pp on a Corfu holiday
Following that, Co-operative Travel's summer holiday sale of 20% off selected packages may seem slightly miserly. But when you see a saving of £124pp on a week's summer holiday in Corfu at the three-star Panorama Resort, including return flights from the UK, it begins to look more attractive. There are restrictions on departure dates though – this offer is for 10 May – so make sure you double check.

A week in Barbados for £611pp
If you prefer less restrictions Asda (yes, the supermarket) are offering up to 15% off hotel accommodation when you book your hotel and flight together. The joy of this is it's valid for any hotel and for travel at any time. For example, we found seven nights in Barbados including return flights for £611pp.
 

Flights

New York for £299rtn
Needless to say there is a grand battle on between the airlines for your post-Christmas cash. Transatlantic routes are seeing a lot of competition. British Airways seat sale is on until 26 January with a return flight from London to New York from £299 if travelling between 19 Jan and 23 March and to Boston for £309 between 11 April and 30 June. They are also offering an interesting three-night package to the four-star Park Central hotel in New York for £399pp including the return flight.

San Francisco for £389
Meanwhile Virgin's seat sale matched BA on a return to New York or Boston and also has returns to San Francisco for £389 for travel between 1 January and 31 March. Virgin Holidays are also offering an extra 5% off all holidays if you book online. Book by 31 January.

Chicago for £389rtn
American Airlines are stamping their mark on the bargains with returns to cities on their home turf for £389. That's Manchester to Chicago – just in case London to NYC ain't your bag.

Bangkok for £389rtn 
If you'd rather go east than west, Qatar Airways have a great sale on until 26 January, valid for travel until 20 June. So a return from London to Hong Kong costs £416 and a return to Dubai for £297. And Gulf Air are also knocking down prices – a return to Bangkok is £389pp if you book before 31 January.

Our comprehensive guide to Italy, including tips on flights, accommodation and activity holidays.