Ryanair shares dip on back of High Court challenge loss

Airline disputed State's travel restriction advice measures

Ryanair has lost its High Court case against the State.

Ryanair shares fell nearly 2% on the back of it losing its High Court challenge against the Government’s travel restriction advice measures in the wake of the Covid-19 pandemic.

The airline had claimed they amounted to a legal restriction on travel in and out of the country. The State disputed those claims, arguing the measures are merely advisory and not binding in nature.

Mr Justice Garrett Simons ruled the Government had not exceeded its executive powers and trespassed upon the legislative power in relation to the measures.

Ryanair's action was against An Taoiseach, Ireland, and the Attorney General, seeking various orders and declarations, including one setting aside the measures announced in late July. This included the advice not to travel outside of Ireland save for essential purposes.

Ryanair challenged the requirement to self-isolate after travel abroad.

Ryanair also challenged the requirement for those returning to Ireland from countries not on the designated “green list” to restrict their movements and self-isolate for 14 days. 

The company claimed the restrictions were unconstitutional and breached various health acts, the European Convention of Human Rights, and the European Charter of Fundamental Rights. It said the Government's travel measures were outrageous, confusing, and a detriment to both the public and its business.

Mr Justice Simons said the Government acted lawfully in providing travel advice and public health advice during the coronavirus pandemic on a non-statutory basis. The Government was entitled, in the exercise of the executive power, to provide such advice to the public, he said.

The advice to avoid non-essential travel and to restrict movements on entry to the state is just that: advice.

Figures from Ryanair show the airline carried 5.1 million passengers across its various services and routes during September, representing a year-on-year drop of 64%.

Further afield, airline representative groups have intensified calls to replace international quarantine measures with passenger testing.

The International Air Transport Association (IATA), Airlines For Europe (A4E), and Airports Council International made the plea in a joint letter to the EU and national health ministers and heads of state.

They said such a move will provide far greater assurance and ability for cross-border travellers and will serve as a lifeline to the millions of workers in the travel and tourism sectors whose jobs remain at risk.

The groups said the impact of international Covid restrictions on the air travel industry could result in a 52% drop in employment across Europe, equating to the loss of around seven million jobs and the loss of nearly €450bn in economic activity. They said the current situation of “patchwork quarantine restrictions” is “unsustainable”.