Ryanair’s CEO, Eddie Wilson, has recently revealed the reasons behind the airline’s decision not to extend its low-cost flights to the US. Despite the easing of COVID travel restrictions and the Dublin and Shannon airports’ US Preclearance, Ryanair has no plans to go transatlantic any time soon.
One of the main reasons, as Wilson explains, is that Ryanair’s business model is not suited for transatlantic flights, where major carriers struggle to make a profit due to various factors such as distance, weather delays, and the challenge of picking up passengers quickly. Ryanair’s short 25-minute turnarounds and its choice of uncongested airports in Europe allow the airline to maximize aircraft usage and make extra turns, which are critical for its profitability.
Moreover, major airports’ slot shortages would make it difficult for Ryanair to provide a presence on key transatlantic routes beyond relying on secondary airports, which would rule out business-class.
Finally, the airline has no experience in running a business-class cabin and lacks cargo, and given that transatlantic flights’ profit comes from 24 people in the front and cargo, Ryanair would have to find a new business model that transfers its short-haul cost-cutting strategies.
Overall, it is not surprising that Ryanair will remain cautious about such opportunities in the future, given the airline’s success in carrying 149 million passengers in 2019. Wilson added that Ryanair’s “boring” strategy of maintaining a strong balance sheet, purchasing aircraft at the right time, and securing growth deals from secondary airports will continue its profitable growth.
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