The announcement today is part of a
PR stunt for what will happen. There are 30 managers having a pay freeze. So what do we consider to be their averag salary(no bonus!) say £180,000 and lets say they would ideally have received 4%? So that's a saving of......£216,000.
You see where I'm coming from...what is that in the scale of things when their fuel bill in 2007 was some Euro 585,031,000. Now that represented approx 32% of their costs and was at a rate of $65 a barrel. Fuel now is up at $107 and their unhedged so that's an increase in costs of around 60% for fuel leading to a fuel bill excluding increaded aircraft numbers and additional flying to around Euro 936,050,000 which is some £278 million or nearly 75% of their profits for 2007.
Anyone had a look at the Euro rate recently? Ok so they gain as the Euro Dollar rate means the increases aren't as bad for aircraft costs and the dollar bills but sadly as they have so many aircraft based in the UK and earnings in sterling where the rate has dropped from 1.48 a year ago to 1.27 today meaning their income has also dropped off considerably....
Challenging times ahead and not just for Ryanair.....