Ryanair CEO Reveals Staff Incentives for Oversized Baggage
Ryanair’s CEO, Michael O’Leary, has recently confirmed that the airline pays its staff a commission based on each oversized baggage fee they charge. This practice is part of an effort to manage the issue of passengers bringing bags that exceed size and weight limits. According to O’Leary, the standard fee for oversized baggage typically ranges between €70 and €75. Additionally, Ryanair charges €13 per kilo for excess baggage, which includes checked luggage.
The Sunday Times reported over the weekend that the commission paid to staff is capped at approximately €80 per employee each month. Speaking on RTÉ’s Morning Ireland, O’Leary mentioned that the airline currently pays its staff €1.50 per bag for identifying oversized items. He also hinted that this amount might be increased in the future to address what he refers to as the “scourge” of oversized baggage.
O’Leary emphasized that the issue of oversized bags is a significant source of frustration for many passengers. He pointed out that some travelers bring large rucksacks, claiming they fit within the size restrictions, even when they clearly do not. He stressed that any bag that does not meet the size requirements will not be allowed on board.
According to O’Leary, passengers who fail to comply with the size and weight restrictions will end up paying excess baggage fees. The airline is willing to provide incentives to its staff by sharing a portion of these fees. He noted that Ryanair operates largely full flights, with about half of the passengers able to carry two bags, while the other half can only bring one. This limitation is due to the space available on the aircraft.
O’Leary highlighted that the airline is already facing challenges with the current level of baggage, which is one of the reasons for its strict approach to oversized luggage. He also addressed proposed EU regulations that would allow passengers to carry a 7kg bag and a small personal item free of charge. However, O’Leary expressed doubts about whether these rules will be implemented.
Strong Financial Performance
In addition to these operational updates, Ryanair announced that its net profit more than doubled in the first quarter of the year. The airline reported a profit after tax of €820 million for the three months ending in June, compared to €360 million in the same period last year. Passenger traffic increased by 4% to nearly 58 million, and average air fares rose by 21%. Revenue grew by 20% to €4.34 billion.
O’Leary noted that passenger growth for the full year may be limited due to “heavily delayed Boeing deliveries.” Despite this, he stated that Ryanair expects to recover almost all of the seven percent fare decline from the previous year. This recovery is expected to result in reasonable net profit growth for the full year.
However, O’Leary also warned that the airline’s outlook remains vulnerable to various risks. These include potential tariff wars, macroeconomic shocks, and conflicts in regions such as the Middle East and Ukraine. The CEO emphasized that these factors could significantly impact the airline’s performance and financial stability.
