Why This Happens?<\/h2>\n
The Irish airline has confirmed that this \u00a0economic incentive\u00a0 rewards its staff for identifying passengers carrying luggage that exceeds the allowed dimensions. Those caught face a penalty of up to \u00a0\u20ac75\u00a0 for having to check their oversized luggage in the hold. O’Leary justifies<\/a> this policy as a way to “eliminate the scourge of passengers with excessive luggage.”<\/p>\n Each employee can earn approximately \u00a0\u20ac80 per month\u00a0 from this practice. While it should be noted that more than \u00a099.9% of travelers\u00a0 comply with luggage standards, the disparity between what Ryanair pays for detecting oversized bags and the penalty charged to passengers significantly contributes to the airline’s profitability.<\/p>\n Recently, Ryanair doubled its net profits<\/a>, reaching \u20ac820 million in the last quarter. Their shares surged 4.7% in the stock market following this announcement. Notably, revenue from auxiliary services\u2014including these luggage penalties\u2014saw a growth of \u00a07%\u00a0, alongside a \u00a021% rise\u00a0 in average ticket prices, now at \u20ac51.<\/p>\n This practice is not exclusive to Ryanair; other airlines, like EasyJet, have implemented similar incentives through subcontracted companies such as Swissport, which pays \u00a0\u00a31.20\u00a0 for each oversized suitcase detected. Employees, typically earning around \u00a0\u00a312 per hour\u00a0, often face \u00a0tense interactions\u00a0 with passengers, who are unhappy about having to pay additional fees just as they\u2019re about to board their flight.<\/p>\n Ryanair is thriving, especially as it becomes the \u00a0leading airline\u00a0 in Spain by passenger numbers, with a growth rate of \u00a020.6%\u00a0 in the last quarter. Spain is their second most significant market after Italy, contributing \u00a0\u20ac772 million\u00a0 to their income.<\/p>\n The \u00a0European Parliament\u00a0 is urging airlines to allow luggage in the cabin free of charge. However, O’Leary predicts<\/a> that this proposal \u201cwill not succeed due to the lack of space in airplanes.\u201d According to their latest financial report, the airline operates at \u00a094% capacity\u00a0, where about half of passengers can carry two bags, while the other half is allowed just one.<\/p>\n Ryanair may not rule out increasing the incentives paid to its employees for detecting oversized luggage. O’Leary anticipates that detections will decrease in the coming years as passengers become more accustomed to the regulations. Meanwhile, the airline is benefiting from a constrained European market expected to remain limited until \u00a02030\u00a0. \u201cWe will have at least five years, until 2030, with capacity constraints,\u201d states Neil Sorahan<\/a>, the airline’s financial director. This situation allows them to maintain high ticket prices and strictly enforce luggage regulations. For travelers, this means a need for \u00a0vigilance\u00a0 regarding the dimensions and weight of their luggage to avoid unpleasant surprises at the boarding gate.<\/p>\n Cover image | Niels Baars<\/a> and Anastasiia Nelen<\/a><\/p>\n In Xataka | Ryanair’s new competition does not come from any European airline: it comes from India and has an ambitious plan.<\/p>\nThe Numbers Behind the Policy<\/h2>\n
Ryanair Is Not Alone<\/h2>\n
The Current State of the Airline Industry<\/h2>\n
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\n <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\nWhat Lies Ahead?<\/h2>\n