European budget airline Ryanair announced changes to its booking and baggage rules today aimed at lowering costs as it faces falling yields and high crude prices.
Chief executive Michael O'Leary told reporters in London Ryanair expected to save €30 million, with changes aimed at lowering the number of check-in and baggage handling staff it needs.
Passengers with EU passports and hand luggage only will be able to check in online under changes, which take effect on March 16th.
Those with luggage will be charged £2.50 or £5 (€3.07 or $6.15) per bag per flight depending on whether they book online.
Ryanair said the changes would have a neutral impact on revenues, because the airline is also at the same time lowering fares by 9 per cent and raising luggage limits to 30 kilogrammes from 25 kilogrammes, which means it would forfeit some excess baggage charge revenues.
Ryanair expects shorter queues and lighter planes as more passengers check in ahead of time and travel with fewer bags.
"The upside for Ryanair in these initiatives will be the opportunity to significantly reduce airport and handling costs," the airline said in a statement to the London Stock Exchange.
The airline said last month it was sticking to forecasts for a 10 per cent rise in net profit for the year to end-March.
Ryanair shares were up 2.08 per cent at €7.87, outpacing London's FTSE 100 index, which was up 0.8 per cent as of 12:23am.