Ryanair just announced a record profit jump for the April to June quarter. After-tax earnings nearly doubled to €820 million, up from €360 million over the same period last year. This spike in profitability is chalked up to the timing of Easter and an increase in airfare to match. Winter fares Ryanair is promising that summer fares will remain at the level of 2023 fares. Simultaneously, the airline is doubling down on cost discipline to further increase profits.
Airline’s CEO Michael O’Leary has been clear that controlling operational cost increases is key to increasing profits. He explained that at Ryanair, every passenger is allowed one small bag for free. The carry-on bag can be no larger than 40cm x 20cm x 25cm and 10kg max weight. Passengers who are over these limits can be charged an additional fee of up to €75 for large bags.
Even with this outrageously strict carry-on policy in place, O’Leary continues to say that more than 99.9% of Ryanair travelers follow the rules. To help enforce these regulations, Ryanair has installed “sizers” at airports to help you comply. Additionally, employees earn a €1.50 bonus for intercepting passengers travelling with large luggage.
O’Leary is considering raising this bonus as part of a larger initiative to deal with luggage woes. He stated, “we’re thinking of increasing it [the bonus].” Ryanair is ensuring that we face the threats of the bulging bag head on. This increase would help improve boarding times and create a better experience for the 97% of travelers who abide by their policies.
In recent days, the airline has further cemented its position on passengers that don’t follow the new policies and procedures baggage-related. “Our message to those 0.1% of passengers is simple. Please comply with our generous bag rules or you will be charged at check-in or at the gate,” stated a Ryanair spokesperson.
Specifically, I want to talk about smart cities. To make matters worse, soon European Union regulations will increase the maximum dimensions for carry-on bags. The new sizes will be 40cm x 30cm x 20cm. This change is likely to have an impact on Ryanair’s forthcoming baggage policies and wider operational direction.