If Ryanair are downsizing for 2006 then one can conclude that Luton is turning out to be under performing for the airline.
MOL has said in several press releases over the last 6/8 months, that he was 'very pleased with how well Luton was performing'. However we all know MOL will say anything!!!. Two additional based 738s had been planned for S06 so clearly something has gone wrong. Amongst other things, more cut throat pricing wanted by ryanair, was not going to be accepted by the spanish operators. Ryan will still have 4 based aircraft serving 12 routes, down to 11 from 21 Feb, when TSF concludes.
STN being so close is always going to be a problem, not just with ryanair, but with all airlines, and this is something the Luton operators have got to hack, bigtime, if they want to develop & expand the airport to anything along the lines of their ambitious 2030 plans, recently made public.