O'Leary reaffirms faith in Ryanair business model

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Ryanair chief executive Michael O'Leary has dismissed concerns about the Irish budget carrier's recent profit warning, insisting that the underlying business model remains sound.

At the World Low Cost Airlines Congress in London, O'Leary said Ryanair's UK traffic has been hit by a combination of air passenger taxes and airport charges at Stansted, but that this trend would now be reversed.

"I think the important thing about our results last week was that earnings are within the range we said they would be – exactly in the range we said they would be. Analysts get a bit over-excited when irrational enthusiasm overtakes them from time to time," says O'Leary.

"If you look at the underlying business model, we will grow strongly this year: we will probably carry 81 million passengers rather than 81.5 million. We announced a 10-year growth plan with Warsaw Modlin and Stansted, where we will double traffic from 13 million to 20 million over the next five to six years."

O 'Leary tells Flightglobal Pro that the challenges in the UK market are in no way unique to Ryanair.