Ryanair makes cuts for second time in a month
HATE FIGURE: Michael O'Leary claims he is so unpopular that half of Ryanair's passengers would like to see him dead. Photo: Getty Images
Ryanair will remove one plane from its fleet at Dublin and cut 50 jobs in the second round of reductions announced in about a month.
Ryanair will also cancel four routes and decrease the frequency on eight more at Dublin airport, it said in a statement today. The latest cutbacks, effective July 2, bring the total to five planes and 250 jobs since Feb. 12.
Airlines worldwide are culling routes and jobs as they face losses that may exceed €1.9 billion this year, according to the International Air Transport Association. The industry lost €6.1 billion in 2008 and carriers such as British Airways Plc and Delta Air Lines Inc. are also reducing capacity.
“That’s the end of the cuts for the summer,” Chief Executive Michael O’Leary said at a news conference in Dublin. “There will be more reductions next winter” and the airline may drop 150 more jobs.
Ryanair blamed the cutbacks on costs at the airport and a new travel tax. The 10-euro-a-head tariff will start on March 30 on most passengers who fly to destinations outside Ireland from Dublin, Shannon or Cork. Ryanair plans to absorb the cost of the tariff, about 70 million euros.
“At a time when governments and airports all over Europe are reducing costs in order to stimulate tourism, the Irish government is raising costs and introducing taxes which can only damage tourism,” O’Leary said in the statement.
Ryanair rose as much as 10 cents, or 3.5 percent, to 2.94 euros in Dublin trading and was up 2.6 percent as of 12:51 p.m. The stock has risen 0.9 percent over the last 12 months, compared with a 41 percent decline by the 10-member Bloomberg Europe Travel & Leisure Index. (Bloomberg)
- Fergal O’Brien and Louisa Nesbitt
