Aurélien Fleurot, edited by Romain Rouillard
The low-cost airline posted a sizable profit of 170 million euros in the first quarter even as the airline sector has seen severe disruption in recent weeks between Covid and strikes. Social movements from which Ryanair is not spared.
It’s a surprising situation that may even seem paradoxical. The low-cost airline Ryanair, affected like all the others by repeated strikes throughout Europe, nevertheless manages to generate profits and displays good economic health. However, there are several explanations that shed light on this insolent success.
Indeed, the traffic at the start of the year was multiplied by five at Ryanair compared to last year. Although it has not yet returned to its pre-crisis level, the company’s trajectory is therefore very positive. Furthermore, Ryanair is only very slightly affected by the rise in the cost of fuel, since 80% of its kerosene purchases were already covered thanks to the anticipation of the airline sector. Finally, Ryanair is simply taking advantage of its low-cost social model to generate so many profits.
Benefits that should weigh in union negotiations
The company highlights its strategy of negotiating pay cuts with the unions to get through the health crisis. However, it is precisely these wages considered too low, but also the working conditions, which are at the origin of the various strikes. Several European countries are concerned, including France, Spain and Belgium last weekend with several dozen canceled flights departing from Charleroi and Brussels.
The profits announced on Monday by Ryanair should be assured in future negotiations with the unions of the company.