Ryanair in Spain: market strategy, growth plans, and sustainability

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A country manager for Ryanair in Spain joined the organization in November 2021, presenting himself as the company spokesperson. He serves as the visible face for the country, which holds the second-largest passenger volume within the group, and he discusses the market’s significance and the airline’s commitment to its future in this interview.

Ryanair is described as one of the lowest-price airlines in the market. Do you expect flight costs to drop in the short term?

Ticket prices mainly hinge on demand and available capacity at any moment. Airlines have raised fares because capacity has shrunk and fewer fleets and seats are on the market. This, combined with oil price volatility, geopolitical factors, and airport taxes, tends to push costs higher. A significant portion of a ticket goes toward taxes and fuel. Before the pandemic, the average fare hovered around 37 euros; now it is closer to 48 euros. The group has always worked to control costs from the consumer side, but operating costs rose by about 24 percent last year due to airport charges, fuel, reduced capacity, and higher payroll costs. By negotiating agreements with cabin crew and pilots, salaries were restored to pre-pandemic levels, and salary increases plus more favorable crew-to-aircraft ratios were approved. All of these steps are reflected in ticket pricing.

How did the company recover from the pandemic, and what about the crisis it caused?

The travel sector was among the hardest hit, with months of inactivity. In Spain, Ryanair benefited from protective measures that helped avoid layoffs. The airline began recovery efforts early, aided by owning the majority of its fleet—537 aircraft—rather than leasing. Other carriers that relied on third-party aircraft faced delays and reduced capacity upon resuming operations. Ryanair kept its fleet and crew ready to fly again as soon as possible after the pandemic. Additionally, the company has historically hedged fuel purchases to shield itself from price swings, further stabilizing operating costs during volatile periods.

There are questions about discount offers. Will ultra-low fares like 9.99 euros or 19.99 euros return?

Finding flights for 9.99 euros is increasingly unlikely given current costs. Occasional promotional fares may appear, but the overall average price has risen. A typical ticket now reflects higher aircraft and fuel costs. With a plane valued at about 100 million euros, it is challenging to sustain tickets at such low levels. Even though fuel is hedged, the barrel price has risen from around 65 dollars three years ago to roughly 90 dollars today. Airport taxes continue to climb, and environmental considerations shape pricing. The sustainability policies driven by Brussels also influence pricing dynamics, making widespread ultra-low fares difficult to maintain.

Do the labor agreements resolve the ongoing labor disputes Ryanair has faced in recent years?

Cabin crew strikes prompted negotiations, culminating in an agreement with CCOO in March 2022 and ongoing work toward a new collective agreement. Salaries for cabin crew have improved, rest days have expanded, and many employees have remained with the company for years. An agreement with pilots was also reached. While the process is time-consuming, there is confidence that large-scale labor conflicts will not recur in the near term.

Why did those conflicts occur in the first place?

The core issue was not a confrontation with workers broadly but with a specific union. When the company entered Spain, it followed Irish labor law, which changed in 2017, necessitating new collective agreements with unions. The negotiations took five years and proved difficult. The unions made demands that were not feasible for the company, leading to strikes. The media spotlight was loud, but operational impact remained limited. Since then, talks with cabin crews have improved working conditions, and the current terms for crews and pilots are more favorable than industry averages.

What are Ryanair’s growth plans for Spain?

Five new routes are planned in Spain as part of a broader growth strategy. The network has surpassed pre-pandemic levels in both routes and capacity by about 15 percent. Last fiscal year saw 52 million passengers on Ryanair services, with forecasts of 55 million in the upcoming year. Spain is viewed as a key opportunity thanks to regional connections not served by other carriers. In addition to Madrid and Barcelona, the airline operates in Castellón and Asturias. The commercial plan targets regional links and seasonality, aiming to increase winter routes while smoothing out summer peaks. Ryanair runs one of the largest European networks, with bases across the continent and thousands of daily flights.

Elena Cabrera is Ryanair’s president for Spain and Portugal. JOSÉ LUIS ROCA

Should there be mergers among airlines, or broader industry consolidations?

Consolidation makes sense in a market that has been oversupplied. It is reasonable to expect three or four major European groups to remain, potentially including Air France KLM, Ryanair, and EasyJet. The goal is a balanced, competitive landscape with robust, sustainable players.

Does Ryanair intend to pursue acquisitions or mergers?

No current plans to acquire another carrier exist. The company has completed strategic acquisitions such as Austrian Lauda and Icelandic Wizz, plus Malta Air. Overall, growth is expected to come from expanding organically. The network currently serves 183.5 million passengers this fiscal year, with a target of 300 million passengers—achievable through continued expansion under Ryanair’s own model.

How does geopolitical tension affect operations in Europe?

Ryanair has redirected flights from affected regions, such as Ukraine and Israel, where operations ceased due to conflict. While revenue from these markets declined, the impact was not crippling. Aircraft can be reassigned to maintain growth, minimizing overall economic disruption.

Is high-speed rail a risk or a complement to Ryanair’s business?

High-speed rail is largely complementary. Any improvement in overall connectivity benefits travelers. Some routes from Madrid to Barcelona were dropped after rail connections proved strong enough, but the broader strategy favors integrated transport options rather than mutual exclusion.

Will Spain remain a priority market for Ryanair in the coming years?

Spain will remain a focal point. The company sees Spain as the second-largest market after Italy, with the United Kingdom close behind. Plans emphasize regional links and off-season routes, reflecting a commitment to growth, investment, and employment. Over 3,000 people are currently employed in Spain, and the aim is to raise market share from about 24 percent to roughly 40 percent over the next decade.

We work for sustainability

Is there room for the airline sector to operate more cleanly and pollute less? The industry is moving toward greater sustainability. Ryanair has a clear roadmap for environmental progress, including the adoption of sustainable aviation fuel SAF. Usage is increasing, though production remains limited by capacity and cost. A major supplier, Repsol, has agreed to supply up to 550,000 tons in the coming years to support Spain’s eight bases. The European Union requires at least 6 percent sustainable fuel by 2030, and the company aims for 12 percent or 12.5 percent on its routes. This shift, together with ongoing efficiency measures, shapes the airline’s long-term plan for greener operations.

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