RYANAIR CEO Michael O’Leary has criticised the Irish government’s infrastructure plan, accusing it of wasting public money while obstructing airline growth at Dublin Airport.
Speaking after Ryanair reported a record €820 million net profit for the first quarter of its fiscal year, which is more than double from the same period last year, O’Leary said the government’s inaction on lifting the airport’s passenger cap was stifling growth and pushing business abroad.
“Here is infrastructure that is built and paid for that they won’t allow us to use,” O’Leary said, referring to the terminal and runway capacity at Dublin Airport, which remains capped at 32 million passengers annually.
The airline boss labelled the government’s forthcoming €100 billion infrastructure plan as “smoke and mirrors” from “a government that wastes money” and accused Transport Minister Darragh O’Brien of “dither, delay and indecision.”
As a result, O’Leary warned that Ryanair is changing its expansion plans to other European markets, particularly Poland, due to the growth restrictions in Dublin.
Ryanair’s latest quarterly results showed impressive gains, buoyed by a recovery in airfares and increased traffic.
Revenue grew 20% to €4.34 billion, with a 21% jump in average fares.
Passenger numbers rose by 4% to nearly 58 million, and unit revenue per passenger climbed by 15%, while costs increased just 1%.
Fuel costs were cushioned by effective hedging, providing stability in a volatile energy market.
Despite the upbeat earnings, O’Leary acknowledged that passenger growth will be constrained for the rest of the fiscal year due to delayed aircraft deliveries from Boeing.
Ryanair is still waiting on 29 long-delayed 737 jets originally due by spring.
Boeing has now asked Ryanair to accept delivery as late as 2026, though O’Leary said this would strain the company’s cash flow.
He also confirmed that the new 737 Max 10 jets are expected to receive certification by the end of this year.
Ryanair and Boeing are exploring options to mitigate the risk of tariffs on US-built aircraft due to a potential EU-US trade dispute.
O’Leary said Boeing would be contractually responsible for any tariffs and hinted at the possibility of registering some aircraft in Britain, where no such tariffs apply under the British-US agreement.
O’Leary also recently caused a stir by confirming that Ryanair staff are paid commission for catching passengers with oversized cabin bags.
Employees earn €1.50 per oversized bag, with monthly commissions reportedly capped at €80, although O’Leary suggested this cap may rise.
“We’re thinking of increasing it,” he said, calling oversized bags “a scourge” and saying strict enforcement is necessary given the limited baggage space on full flights.
He dismissed proposed EU regulations that would entitle all passengers to bring a 7 kg cabin bag and a small personal item free of charge, casting doubt on their viability.
O’Leary said Ryanair “cautiously expects to recover almost all of last year’s 7% full-year fare decline,” which could lead to further profit growth.
However, he warned that risks remain, citing tariff threats and geopolitical instability in Ukraine and the Middle East.
Despite these challenges, the airline remains confident in its long-term growth if it is allowed to make full use of the infrastructure already in place at Dublin Airport.
“Until the government gets serious about aviation and stops playing politics, Ireland will continue to lose out,” he said.