The True Cost Of Flying Ryanair Becomes Apparent
Expenses are beginning to bite, just as an expansion spree eats into profit.
It's all getting a bit "real" for Ryanair.
Photographer: Aidan Crawley/Bloomberg
Ryanair Holdings Plc is supposed to be the airline every passenger loves to hate, but keeps using anyway. Who cares about a comfy pillow or complimentary peanuts when the fares are so cheap? CEO Michael O’Leary has for years been able to bat away disgruntled staff and poor customer feedback by pointing at his ever-growing traffic numbers. That, combined with his fierce discipline on costs, has kept investors happy.
Its shares, which have been in the doldrums for about a year, fell as much as 6 percent on Monday after it reported a 20 percent slump in first-quarter profit. It blamed strikes and the threat of future labor disputes, which put customers off booking flights. It had to cut fares and may need to do so again.