Ryanair investors revolt over Michael O’Leary’s £129m pay deal

Ryanair shareholders approved a bonus scheme for CEO Michael O’Leary, with 60.7% in favor and 39.3% against. The plan extends his contract to 2032 and offers up to €150m if targets, including a share price above €42, are met. O’Leary dismissed the opposition, noting the payout is tied to performance.

Ryanair shareholders voted 2-to-1 to approve a new contract for CEO Michael O’Leary, potentially worth €150mn. The deal includes options to buy 10mn shares if Ryanair's share price hits €42 or post-tax profits reach €4bn. O’Leary defended his pay, linking it to performance targets. Ryanair shares have fallen 25% this year. O’Leary also criticized competitors, calling them 'high-fare rapists,' sparking controversy.

Ryanair Holdings (RYAAY) reduced its fiscal 2027 traffic forecast to 214 million passengers, down from 216 million, to mitigate exposure to high fuel prices. August 2026 traffic grew 6% YoY to 22.2 million passengers, with a stable load factor of 96%. The company expects winter losses to decrease by €70-100 million. RYAAY's shares have declined significantly YTD, underperforming industry peers. Analysts have revised earnings estimates downward, and the stock has a Zacks Rank #4 (Sell).

Ryanair carried 208.4 million passengers in FY26, posting a net profit of €2.26 billion. The airline's success is attributed to its low-cost model, ancillary revenue, and operational efficiency. Ryanair's revenue grew 11% to €15.54 billion, with profit after tax up 40% year-on-year. The airline operates a standardized fleet and aims for quick turnarounds to maximize aircraft utilization.

Ryanair will cut 10,000 flights from November 2026 to March 2027 due to an 80% rise in fuel prices, aiming to reduce winter losses. Affected routes include flights between Italy and London. The airline lowered its annual passenger forecast to 214 million, down from 216 million, and expects fare increases if oil prices stay high. Ryanair has hedged 80% of its fuel for the period.

Ryanair is reducing its winter flight schedule and lowering its annual passenger target by 2 million to 214 million due to high jet fuel prices, which are around $140 per barrel. The airline has hedged 80% of its fuel at $67 per barrel, but expects to cut seasonal losses by €70-100 million. Ryanair warns that European air fares could rise significantly in 2027 if oil prices remain high.