Love him or hate him, it’s hard to deny Ryanair boss Michael O’Leary is a shrewd businessman. So it’s worth noting that O’Leary, eyeing a $108 million bonus, is actively opposing what will be the next big cash windfall for his budget airline.
The CEO of Europe’s busiest carrier is preparing for higher revenues this winter thanks to a unique passenger cap at Ryanair’s primary airport. But if you believe O’Leary, it’s apparently the last thing he wants.
Dublin Airport has a 32 million annual cap on passengers. The cap was put in place in 2007 to allow the airport to gain planning permission for a second terminal and an extension to its first terminal.
The airport applied to Fingal Council last year to extend this cap to 40 million passengers. However, the council pushed back, asking for reams of extra information in February and giving Dublin Airport six months to reply.
This means Dublin Airport, which effectively hit its cap last year with 31,908,471 passengers, cannot expand its passenger numbers until it gains permission to increase that cap.
It also means that prices for flights will inevitably rise as passengers compete for seats.
A representative for Fingal Council didn’t immediately respond to Fortune’s request for comment.
‘Make out like bandits’
This, O’Leary thinks, is untenable given the airport has the capacity for 60 million passengers per year thanks to a €300 million ($324 million) second runway that opened in 2022. He also suggested it would take four years for the cap to be lifted.
Speaking at the Oireachtas Transport Committee, O’Leary warned that Ryanair would “make out like bandits” this winter as a result, charging up to €500 ($540) for one-way fares and €1,000 ($1,080) for return trips.
“I will make a fortune this Christmas,” O’Leary said, according to several media reports.
Additionally, O’Leary warned that as Ryanair grows, the benefits would bypass the airline’s home of Dublin. It appears he would rather keep the budget airline’s prices low and accommodate more passengers.
While O’Leary’s frustration at receiving up to $1,080 from hamstrung customers might be a boon to Ryanair’s coffers, there is an obvious alternative financial motivation to lobby for increased passengers.
O’Leary is set for a €100 million ($108 million) bonus if he can keep Ryanair’s share price above €21 for 28 days. It briefly hit that target through April but not for the minimum required period. A jump to the passenger cap at Ryanair’s airport would go a long way to helping O’Leary get his payday.
O’Leary also lamented "a couple of Nimbys in north county Dublin" for local opposition in the form of a bizarre stream of noise complaints.
Dublin Airport received more than 26,000 noise complaints from locals in 2022, putting pressure on the local council to suppress growth.
However, it was revealed that one person was solely responsible for 23,431 of those complaints.
