Ryanair Pulls Plug on Loss-Making Membership Scheme
Ryanair has abruptly terminated its Prime membership scheme after just eight months of operation, citing unsustainable customer benefits that significantly outweighed subscription revenue. The budget airline confirmed the immediate closure on Friday, marking a dramatic reversal for what was intended to be a loyalty programme for frequent flyers.
Financial Imbalance Forces Closure
The airline revealed that 55,000 passengers had signed up for the Prime scheme, generating €4.4 million (£3.5 million) in subscription fees. However, members managed to extract more than €6 million in benefits, creating a clear financial loss for the company.
Dara Brady, Ryanair's chief marketing officer, 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."
Prime Scheme Benefits and Costs
Launched in February at an annual cost of £79 in the UK and €79 in the EU, the Prime scheme offered substantial benefits including:
- Flight discounts on regular fares
- Free reserved seating on up to 12 flights annually
- Comprehensive travel insurance coverage
With seat reservation costs ranging from £4.50 to £38, savvy travellers could potentially save between £54 and £456 annually by maximising their 12 included seat reservations - equivalent to several low-fare flights.
Transition Plan for Existing Members
Ryanair confirmed that no new members will be permitted to join after Friday, 28th November. However, existing Prime members will continue to enjoy exclusive low fare offers until October 2026, honouring the remainder of their 12-month membership terms.
The airline expressed gratitude to its 55,000 Prime members while confirming a return to offering discounts to all customers rather than maintaining an exclusive membership tier.
This decision highlights the challenges budget airlines face in balancing customer loyalty programmes with profitability, particularly for Ryanair, which carries more than 207 million passengers annually and has built its reputation on ultra-low fares supplemented by innovative charging for ancillary services like baggage and seat selection.
