Ryanair stock hits all-time high on its 40th anniversary

“People either see me as Jesus, Superman or an odious little shit,” Ryanair CEO Michael O’Leary once observed, in a moment of self-analysis. “I think I’m Jesus. A prophet in his own time.”

O’Leary certainly has achieved near-miraculous results in his 31 years piloting the Irish airline, which last Tuesday celebrated the 40th anniversary of its first flight, a 15-seater from Waterford to Gatwick. While famous for his politically incorrect comments (“no one wants to sit beside a really fat bastard on board”) and dismissive attitude to complaints (“they say the customer is always right, but you know what – they’re not”), he has built one of the world’s largest and most consistently profitable airlines.

In its last reporting year, Ryanair’s fleet of over 550 aircraft carried more than 200 million passengers for the first time, behind only the US carriers American Airlines and Delta. This week, its share price reached a new all-time high.

Ryanair’s success is built on its “budget” strategy of cutting core fare prices as much as possible by stripping out services, from seat selection to onboard meals, that can be sold separately. (O’Leary has joked about taking this further by making toilets coin-operated, and replacing back row seats with a standing area.) Timeliness may also be sacrificed for lower fares: around 30% of Ryanair flights take off late.

Ryanair borrowed this low-cost model from America, where it was pioneered in the 1970s by Southwest Airlines. And O’Leary has attracted shareholder criticism for his US-sized pay package consisting of a salary of €1.2m, a bonus payment of €600,000 and share options of €2.03m. Something for you to ponder this holiday season as you wait for your delayed midnight flight from Luton .