Equities Transport and Tourism

Ryanair shares rise amid fleet reduction plans for Irish winter schedule

Ryanair shares ended in the green Wednesday, after the budget airline announced plans to reduce its Dublin-based fleet over the winter schedule. The move puts up to 300 Irish-based jobs at risk, as the airline moves to take advantage of growing demand from its Polish charter airline.

Ryanair shares closed 0.64% higher at €14.09, Wednesday. The stock suffered recent losses amid strike problems from its own staff, as well as flight cancellations, due to French air traffic control industrial action.

Ryanair’s winter scheduling plans

Michael O’Leary’s budget airline said Wednesday, that it would reduce its Irish Winter fleet by at least 6 planes from the current 30 it has based there. The move will mean that 100 pilots and 200 cabin crew in Dublin, will lose their jobs.

The decision to reduce its Winter provision for its Dublin operations, comes as forward bookings for its Irish flights has taken a downturn amid ongoing strike action.

Polish business flying high

Aside from an increase in industrial action by its staff, Ryanair also said that a notable pickup in business and profitability at its Polish charter airline was the main contributing factor to the decision.

“We regret these base aircraft reductions at Dublin for Winter 2018, but the Board has decided to allocate more aircraft to those markets where we are enjoying strong growth (such as Poland), and this will result in some aircraft reductions and job cuts in country markets where business has weakened, or forward bookings are being damaged by rolling strikes by Irish pilots,” Ryanair’s COO, Peter Bellew said.

“Ryanair operates a fleet of over 450 aircraft from 87 bases across Europe. We can only do so if we continue to offer low fares, reliable flight services to our customers, and if our reputation for reliability or forward bookings is affected, then base and potential job cuts such as these at Dublin are a deeply regretted consequence”.

Ryanair Sun is set to offer an additional 5 planes to its Polish tour operators as demand for the service grows.

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