The Ryanair Model: you don’t get rich playing by the rules


A file photo dated 11 August 2008 showing two planes of Irish low-cost air company Ryanair in Girona airport, Catalonia, northeastern Spain. Irish budget carrier Ryanair revised upward its full-year profit forecast 02 February 2015, citing lower fuel costs and higher passenger numbers. This is the fourth time the no-frills airline has upped its profit outlook for the fiscal year, which ends in March. Ryanair, which this year marks the 30th anniversary of its founding, now expects to earn 840 million euros to 850 million euros (951 million dollars to 962 million dollars) in annual profit. In May, it had estimated profit at 580 million to 620 million euros. The fall in oil prices is expected to contribute to a 5-per-cent reduction in costs, Ryanair said.

The Ryanair Model: you don’t get rich playing by the rules

Ryanair on Wednesday revised its profit forecast, bringing it to a whopping 47%. The low cost model is something we all appreciate as consumers; the market does too.

The company is now valued at € 18,8 bn and is the fifth most valuable carrier in the world. This story is often narrated as the story of a heroic CEO who picked up a few tricks from Southwest Airlines Co. in the US, the third most valuable company in the world. In this story a company went from one aircraft and 5,000 passengers t...

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