Ryanair 'not as exposed to sterling drop as its competitors'

Eddie Wilson says Ryanair recovered faster than other EU airlines and delivered 15% growth on pre-Covid numbers in Ireland

Ryanair DAC CEO Eddie Wilson and Tánaiste Leo Varadkar look on as Ryanair CEO Michael O’Leary speaks at the event in The Merrion Hotel, Dublin, to mark Ryanair’s 35th birthday. Picture: Brian Lawless/PA

Ryanair DAC CEO Eddie Wilson said the airline is not as exposed as its competitors to the drop in sterling, despite it being the largest airline in the UK by passenger numbers.

Sterling has plunged since Friday following radical unfunded tax cuts. It fell again on Wednesday as Bank of England had to step in and buy British bonds amid an unfolding crisis.

“We don’t have any exposure. In fact, we’re in the money,” said Mr Wilson, who added that Ryanair’s low-cost fares will continue to drive up momentum, despite the cost-of-living crisis both in Ireland and the UK.

"It’s not that we welcome a recession, but certainly we are the last to feel it," he said.

“Before the financial crisis, people parked around the corner from Lidl and Aldi and skulked their way in, and now it’s a badge of honour to say you buy your stuff there. I could see the same thing happening with Ryanair,” he said.

Ryanair has delivered 15% growth on pre-pandemic numbers in Ireland this year, and has recovered faster than any other EU airline.

“We’d rather what is happening in the UK wasn’t happening, the question is what way will that translate into consumer sentiment,” Eddie Wilson said.

However, these low-cost fares that are giving Ryanair a competitive edge while battling current economic headwinds are being targeted in measures to tackle the climate crisis, which Mr Wilson said is “unfair”.

Mr Wilson asked Government to oppose environmental taxes, which he said “penalise the most efficient point to point flights, while exempting the most polluting long-haul and connecting flights across Europe”.

“If there’s going to be an environmental tax, everybody should pay. And what’s even better is, the polluters should pay more,” said Mr Wilson.

Ryanair shares dropped 18% since the start of the year, according to figures this month. Mr Wilson said that the rise and fall of the share price has “nothing to do with us.”

“What’s going on in the markets at the moment is that there’s doom and gloom everywhere,” said Mr Wilson.

He added that Ryanair’s business model is “solid, unlike our competitors'”.

Ryanair announced it plans to increase the number of passengers by 10m people per year, despite the cost of living crisis.

The airline also plans on creating 2,000 new jobs in Ireland by 2030, he said. 

We are now embarking on a new decade of growth and investment here in Ireland.

“In partnership with our main airport partners at Dublin, Cork, Shannon, and Belfast, Ryanair plans to grow Irish traffic from 20m to 30m per annum over the next decade,” he added.

Ryanair said it contributes around €130m to GDP, and 3,000 jobs in Munster alone.

The announcements were made at an event marking the airline’s 35th birthday, where Tánaiste Leo Varadkar was also present.