Ryanair Grounds Prime Membership Scheme
Ryanair has made the surprising decision to abruptly terminate its Prime membership scheme after a mere eight months of operation. The budget airline confirmed the closure on Friday, citing that customers had exploited the programme's benefits to such an extent that it became a financial loss-maker for the company.
A Financially Unsustainable Model
The airline disclosed that 55,000 passengers had signed up for the Prime scheme, generating €4.4 million (£3.5 million) in subscription revenue. However, the value of benefits claimed by members exceeded €6 million, creating an unsustainable financial gap. Dara Brady, Ryanair's chief marketing officer, stated unequivocally: "This trial has cost more money than it generates."
Brady further explained that the level of subscription revenue did not justify the considerable time and effort required to launch monthly exclusive Prime seat sales for what he described as "this subset of 55,000 Prime members." The company consequently announced it would return to offering discounts to all customers rather than maintaining an exclusive membership tier.
Prime Scheme Benefits and Structure
Launched in February at an annual cost of £79 in the UK and €79 in the EU, the Prime scheme offered substantial benefits including regular flight discounts, free reserved seating on up to twelve flights annually, and comprehensive travel insurance. With seat reservation costs typically ranging from £4.50 to £38, savvy travellers could potentially save between £54 and £456 per year by maximising their twelve allocated flights.
The membership operated on a 12-month rolling basis with automatic renewal. Despite the scheme's closure to new members after Friday, 28th November, existing subscribers will continue to receive exclusive low fare offers until October 2026, honouring their original membership terms.
Ryanair's Broader Business Strategy
This decision reflects Ryanair's renowned focus on cost control and profitability. As Europe's market leader in budget air travel, carrying more than 207 million passengers annually, the airline has built its success on low base fares while generating significant ancillary revenue through innovative charging for services like baggage and seat selection.
Ryanair pioneered checked baggage fees in 2006 and introduced check-in fees in 2009 for passengers who failed to print boarding passes at home during the pre-smartphone era. More recently, the airline increased bonuses for airport staff who identify non-compliant carry-on luggage, with passengers facing charges of up to £75 when their cabin bags exceed size limits and must be placed in the hold.
The company expressed gratitude to its 55,000 Prime members while confirming the programme's discontinuation represents a strategic shift back to inclusive discounting rather than exclusive membership benefits.
