Ryanair shares rise amid ‘cuddly Michael effect’

Shares in Ryanair were boosted yesterday after one of its smaller rivals — British low-cost airline easyJet — forecast profit growth of 14%, and on expectations that the Irish airline’s new “cuddly” customer-service focus is paying off.

Ryanair shares have now risen 33% since the start of the year, helped by the “cuddly Michael effect”, said David Holohan, head of research at Merrion Capital, referring to Ryanair chief executive Michael O’Leary’s new focus on customer service at the airline.

The new policy has paid off by delivering passenger numbers and higher yields, Mr Holohan said.