Originally Posted by
True Blue
Investors will back them until it starts to affect share price/dividends. Then they will turn like a pack of wolves. Dangerous game for MOL and the board and I made a comment a while back that the future of Ryanair was dependent on how they managed this crisis. Evidence is not very well and they are learning little. That in itself is dangerous. You can go from being a very strong player to a weak position very quickly and there were much bigger companies than Ryanair that no longer exist.
Yes, but ... one of the largest costs in a business is salaries. Increase that item and you reduce profits. Once you have increased them then that higher cost is baked in for years to come.
Higher long term operating costs may permanently reduce share price and dividends. Short term industrial disruption may possibly only impact on one financial year.
Investors can have long term as well as short term time horizons. Some short term pain to maintain a longer term goals may be acceptable.