In 1994, a small, upstart Irish airline had been struggling to compete with the powerful duopoly of British Airways and Aer Lingus on routes between the United Kingdom and Ireland for ten years. It had a small fleet of elderly planes and growing debts. It had successfully drawn passengers away from the larger carriers by undercutting their prices, but its operating costs were outstripping its revenues. Its name was Ryanair.1
Enter entrepreneur Michael O’Leary. Taking inspiration from the successful U.S. budget airline Southwest, he transformed the small company, implementing an approach not seen before in Europe: He slashed Ryanair’s operating costs by removing all the “frills”—business-class cabins, complimentary food and drinks, inflight magazines—effectively turning its planes into flying commuter buses. He also standardized the company’s fleet on a single aircraft type, massively cutting maintenance and training costs.2
Since then, O’Leary has grown Ryanair into Europe’s largest airline. Between March 2025 and March 2026, it carried 208.4 million passengers on 647 aircraft to more than 200 destinations, generating an eyewatering profit of €2.26 billion.3 Its remarkable success has inspired others, with Europe’s low-cost carriers (primarily Ryanair, EasyJet, and WizzAir) now accounting for around 40 percent of all flights on the continent.4
Ryanair has achieved all this while slashing passenger fares to some of the lowest available anywhere in the world. Its prices typically start around €14.99 ($17.36) for a one-way ticket and go as low as €5 during sales.5 This is far cheaper than the fares that O’Leary’s inspiration, Southwest, offers on U.S. domestic flights, which typically start around $59.6 Newer U.S. budget carriers have taken inspiration from Ryanair, including Frontier and the recently collapsed Spirit Airlines, but none has been able to fully replicate its ultra-low-cost model in the U.S. market.
O’Leary is often asked whether Ryanair has any interest in expanding into the U.S. domestic market or other markets such as transatlantic routes, the Middle East, Africa, or Asia. His recent answer to this question at the 2026 Norges Bank Investment Conference shines a light on why U.S. budget airlines have struggled to replicate his success in the American market:
We work very well in Europe because we have pretty much incompetent competition in Europe, like Lufthansa, Air France/KLM . . . The U.S. airlines are a bit more aggressive; they are much stronger and much more well-embedded. . . .
The only good thing about Europe is it is a deregulated market for air travel. So, thankfully I get very little government interference. The minute I go outside of Europe, to the Middle East, to Asia, to the U.S., it is hugely government regulated. [Air travel in] the States is already reasonably well-run, although it’s quite expensive. [Operating there] wouldn’t work, and it would undermine Ryanair.7
O’Leary deserves kudos for pointing to government interference as the key barrier to improving the quality of air travel around the world. In the United States, regulations have caused the high fares that would make Ryanair’s model unviable and draw the company’s resources away from Europe, whereas in Europe, past and present government control of airlines has created a market in which challengers can outcompete them easily, as O’Leary says:
[European national airlines] are all useless. Government-owned, heavily regulated, hugely government-subsidized. All the [legacy carriers] are running around at the moment trying to get bailouts. . . . It’s not a hypercompetitive industry. . . . So, all I have to be is modestly competitive to be better than the rest of the competition in Europe, but that’s not setting the bar very high.8
Imagine the improvements that would be possible in a market that combined the best of both worlds—the better management of established U.S. airlines with the less-regulated market of Europe. O’Leary has no time for the way governments hamper business and restrict freedom, and he’s not afraid to make his derision public. Indeed, O’Leary credits his willingness to speak and act in accordance with his honest views as a factor in Ryanair’s success:
The advantage of not being overly sensitive about my reputation or our image or being culturally popular is that we’re ruthlessly low cost, and that gives us huge freedom to chase those kinds of cost-saving measures or to reinvent the way we drive the airlines, and then ultimately all the other morons will follow us along. The American airlines have just discovered charging for bags 15–20 years after we started doing it. Now they’re trying to do it as a way of gaining revenue whereas we did it not as a way of generating revenue but as a way of eliminating cost.9
Michael O’Leary deserves credit for his unabashed honesty in calling out government regulations for the way they constrain business and make us all worse off. His clarity on this issue, his willingness to say what he thinks without concern for others’ reactions, and his integrity in running his business in line with his ideas should be an inspiration to all.
Luke Peters, “From Small-Scale Startup to Low-Cost Leviathan—Marking 40 Years of Ryanair,” AeroTime, February 17, 2024, https://www.aerotime.aero/articles/40-year-ryanair-history.
Peter Westberg, “Michael O’Leary: Ryanair’s Maverick CEO,” Quartr, September 15, 2025, https://quartr.com/insights/business-philosophy/michael-oleary-ryanairs-maverick-ceo.
“Ryanair 2025–26 Pat Rises 40% to €2.26BN (pre-except.) Traffic Grows 4% to 208M Despite Boeing Delays,” Ryanair, May 18, 2026, https://corporate.ryanair.com/news/ryanair-2025-26-pat-rises-40-to-e2-26bn-pre-except-traffic-grows-4-to-208m-despite-boeing-delays.
“European Aviation Market Briefing,” https://www.oag.com/european-aviation-data.
“Ryanair Flights and Destinations,” Ryanair, https://www.ryanair.com/flights/gb/en (accessed September 1, 2026); “Ryanair Launches Fiver Flights Flash Sale Fares from Only £5 in June,” Ryanair, May 19, 2021, https://corporate.ryanair.com/news/ryanair-launches-fiver-flights-flash-sale-fares-from-only-5-in-june.
“Low Fare Calendar,” Southwest Airlines, https://www.southwest.com/air/low-fare-calendar (accessed September 1, 2026).
“Michael O’Leary—Group CEO at Ryanair | Investment Conference 2026,” Norges Bank Investment Management, May 7, 2026,
“David Rubenstein—Kenneth Griffin—Michael O’Leary—Robyn Grew | Panel Discussion,” Norges Bank Investment Management, May 16, 2026,
“David Rubenstein—Kenneth Griffin—Michael O’Leary—Robyn Grew | Panel Discussion,” Norges Bank Investment Management.



