How Much Does Distance Matter? An Empirical Assessment οf Price Formation in Ryanair Flights
Purpose: The purpose of this study is to examine the relationship between flight distance and ticket prices in the low-cost airline sector, using Ryanair routes from Gdańsk, Warsaw and Berlin as a case study. The research aims to determine whether distance is a significant and stable predictor of airfare levels and to what extent it explains price variation in the Low-Cost Carriers (LCC) business model. Design/Methodology/Approach: The analysis uses cross-sectional data on the lowest and highest available fares for all direct Ryanair flights from three European airports in September 2024. Distances were calculated using great-circle metrics. The study applies descriptive statistics, Pearson correlation coefficients and single-equation linear regression models to quantify the distance–price relationship and evaluate the explanatory power of distance for airfare formation. Findings: The results indicate a positive but moderate relationship between route length and airfare levels. Correlation coefficients vary substantially between airports, with the strongest effect observed in Warsaw. Regression models confirm statistical significance of distance; however, their explanatory power differs markedly, reaching a high level only for Warsaw. The estimated slope parameters suggest that average airfares increase by approximately 11.5–19.1 PLN (3.1-5.2 USD) per additional 100 km. For Gdańsk and Berlin, intercept values reveal the presence of substantial fixed cost components unrelated to distance. Practical Implications: The analysis shows a clear but moderate positive relationship between route distance and ticket prices across all three airports. The lowest fares were identical in all cases (65 PLN ≈ 17.86 USD), indicating uniform minimum pricing regardless of origin. However, the range of minimum fares differed by airport. Linear regression models confirmed statistically significant effects of distance, with slope coefficients between 0.115 and 0.191, meaning that every additional 100 km increased fares by 11.50–19.10 PLN (3.16–5.25 USD). Long-haul routes above 2000 km exhibited visibly higher average prices, rising from around 70–82 PLN (19–23 USD) on short routes to 172–259 PLN (47–71 USD) on long ones. Originality/Value: This study provides an up-to-date empirical assessment of distance-based pricing in the European low-cost airline market, using three distinct airport profiles and a uniform dataset collected on a single reference date. It contributes to the literature by quantifying the structural differences in distance sensitivity across airports and by demonstrating the limited explanatory power of distance in LCC price formation.