An Irish low-cost airline headquartered in the Swords district of Dublin, Ryanair and beyond. First established in 1984, the airline had humble beginnings, starting as a small operation with just a single 15-seat turboprop aircraft EMB 110 Bandeirante. Over the years, though, Ryanair has transformed into a major player in the airline industry, thanks to its strategic innovations, cost-saving measures and bold expansion efforts.
Here we explore the history of Ryanair, tracing its journey through the years, examining key milestones, destinations, fleet development, competitors, and its present status as a prominent low-cost carrier (LCC).
Early years of Ryanair (1984-1990)
In 1984, a company named ‘Danren Enterprises’ was founded by three business entrepreneurs Christopher Ryan, Liam Lonergan, and Tony Ryan. Shortly thereafter, the company underwent a name change and became known as ‘Ryanair’. The airline commenced operations in July 1985, initiating a daily route between Waterford in Ireland and London Gatwick. Tony Ryan envisioned Ryanair as a specialist carrier offering short-haul flights between Ireland and the United Kingdom (UK).
During its inaugural year, with a staff of 57 employees, Ryanair transported just over 5,000 passengers. Strikingly, Ryanair’s introductory fare of £99 was less than half the price of the lowest equivalent return fare offered by British Airways and Aer Lingus, which stood at £209.
In 1988, Michael O’Leary was appointed as Ryanair’s chief financial officer. Due to declining profits, in 1990 Ryanair underwent restructuring, adopting the low-fare model inspired by Southwest Airlines, after O’Leary had paid a visit to the American company.
In 1994, Michael O’Leary took the role of chief executive officer. The airline soon retired its turboprop fleet in favor of the more cost-effective Boeing 737 aircraft. These changes marked the beginning of Ryanair’s transformation into an LCC.
Expansion and innovation (1990-2000)
The 1990s marked a significant turning point in Ryanair’s strategy. The airline embraced the low-cost, no-frills approach, reducing operational costs by eliminating unnecessary services. This innovative model, combined with competitive pricing, led to rapid expansion.
In 1997, Ryanair expanded its horizons beyond the UK and Ireland. During that year, the airline introduced six 737–200 aircraft to inaugurate three new routes: Dublin to Paris and Brussels, as well as London Stansted to Stockholm. By the end of the decade, Ryanair had become one of Europe’s largest LCCs. In fact, the ‘Ryanair model’ of streamlined operations and affordable fares began to reshape the whole airline industry.
The digital age and present of Ryanair (2000-2024)
In the year 2000, Ryanair launched its website, initially viewing online booking as a relatively insignificant aspect of the software that supported the site. Over time, though, online booking gained increasing importance and played a pivotal role in achieving the airline’s objective of reducing flight prices by selling tickets directly to passengers.
In 2003, Ryanair made a strategic move by acquiring Buzz, a struggling competitor, from KLM (Royal Dutch Airlines).
As with the aviation industry as a whole, the COVID-19 pandemic had a profound impact on Ryanair, resulting in workforce reductions, flight suspensions, and financial setbacks.
However, in May 2023, Ryanair confirmed a significant order for 300 Boeing 737-MAX 10 aircraft. This agreement included 150 confirmed orders and the potential for an additional 150, with deliveries scheduled between 2027 and 2033. Half of these aircraft are intended to replace retiring Boeing 737-800s.
Key destinations
Ryanair’s flight network has witnessed remarkable growth over the years. Starting with a handful of routes between Ireland and the UK, it now serves over 200 destinations across 33 countries. The airline carries an average of 131 million passengers every year and performs more than 1,800 daily flights across its 86 bases. By 2026, Ryanair is expected to carry 225 million passengers.
The airline strategically selects secondary and regional airports, which tend to offer lower fees and more efficient operations than major hubs. This approach allows it to provide competitive fares to its passengers.
Ryanair’s fleet development
Fleet development has played a pivotal role in Ryanair’s success. In its early years, the airline operated a diverse range of aircraft, including turboprops like the Convair 580 (retired in 1988), Embraer EMB 110 Bandeirante (retired in 1989), the Hawker Siddeley HS 748 (retired in 1990), and the ATR 42-300 (retired in 1991). The company retired its only flying boat, the Short Sunderland, in 1989.
As Ryanair expanded, it shifted towards a policy of fleet standardization, primarily relying on the Boeing 737-200 and 737-300 aircraft. By 2004, these were all replaced by the Boeing 737-800. This standardization simplified maintenance, training, and operations, resulting in cost reduction and improved operational efficiency. In recent years, Ryanair has demonstrated a commitment to modernizing and expanding its fleet, with significant orders for the aforementioned Boeing 737 MAX aircraft.
As of March 2024, Ryanair’s fleet consists of the following aircraft:
• Airbus A320-200: 27 aircraft, operated by Lauda Europe
• Boeing 737-700: 1 aircraft, operated by Buzz
• Boeing 737-800: 409 aircraft, operated by Ryanair, Malta Air, Ryanair UK, and Buzz
• Boeing 737 MAX 8: 144 aircraft, operated by Ryanair, Malta Air, and Buzz
Competitors
Ryanair’s meteoric rise as a low-cost giant triggered fierce competition within the European aviation industry. When Aer Lingus shifted its strategy to low fares starting in 2002, it resulted in heightened competition with Ryanair on routes within Ireland. Airlines that seek to directly rival Ryanair have been known to meet with fierce competition, and some have accused Ryanair of lowering fares substantially to undermine competitors.
Since 2004, rivalry has developed with other LCCs like easyJet, Norwegian Air Shuttle, and Wizz Air. These competitors have engaged in fare wars and introduced innovations in the low-cost airline sector, while ultimately benefiting passengers with increased choices and lower ticket prices.
Ryanair today
Today, Ryanair stands as one of Europe’s largest and most profitable airlines. Ryanair’s market share has grown in most European Union countries. In the fiscal year of 2023, the company operated at 116% of the capacity it had reached before the Covid-19 pandemic. The biggest increases were seen in Italy, where Ryanair’s market share went up from 27% to 40%, in Poland (from 26% to 36%), and in Ireland (from 49% to 58%). As a result, Ryanair’s revenue went from €4.80bn in 2022 to €10.78bn in 2023 - a mighty +124% increase.
Its aggressive expansion strategy has seen it acquire other airlines, including Buzz, and Lauda (acquired in 2018). Ryanair also established a new airline called Malta Air in 2019, further diversifying its services. Despite facing occasional controversies and criticisms related to its business practices, Ryanair has maintained a robust presence in the industry. The airline continues to transport millions of passengers annually, offering affordable air travel and reshaping the landscape of European aviation.