Ryanair CEO to Elon Musk: Thanks for the Free Publicity and Booking Surge

TLDR

• Ryanair CEO Michael O’Leary thanked Elon Musk for the public feud, saying it boosted website traffic by 2-3% and led to a surge in bookings over five days.
• O’Leary said Musk is welcome to invest in Ryanair but cannot acquire the airline due to EU rules preventing foreign nationals from owning a majority stake in European airlines.
• The dispute started when O’Leary rejected Starlink for Ryanair’s fleet, citing high installation costs and fuel drag that would cost €100-200 million annually.
• Musk called O’Leary “an utter idiot” and suggested buying Ryanair to fire him, while O’Leary joked that investing in Ryanair would give better returns than Musk’s $44 billion X purchase.
• Ryanair shares rose 2.83% over the past week and closed at $70.45 on Wednesday, up 1.37% for the day and 3.89% in overnight trading.

Ryanair CEO Michael O’Leary addressed his ongoing dispute with Elon Musk at a press conference in Dublin on Wednesday. O’Leary said he was thanking the Tesla CEO for the publicity from their public spat.

The airline launched a “great idiots” seat sale on Tuesday that received three to four million hits. O’Leary said bookings increased by 2% to 3% over the past five days because of the attention from Musk’s comments.

Ryanair Holdings plc, RYAAY

The feud began when O’Leary rejected using Musk’s Starlink satellite internet service on Ryanair’s fleet of over 600 aircraft. O’Leary explained the decision was based on installation costs and fuel drag concerns.

Starlink Costs Too High for Ryanair

O’Leary said adding Starlink would increase the airline’s annual fuel bill by €100 to €200 million. The company held talks with Starlink for about 12 months but could not agree on terms.

Ryanair estimates fewer than 10% of passengers would pay for onboard Wi-Fi service. Starlink believes about 90% of passengers would pay for the service.

The airline rejected Starlink last week due to antenna drag increasing fuel burn. The potential annual cost was estimated at around $250 million.

Musk shared a poll on X asking followers to vote on acquiring the airline. About three-quarters of respondents approved the idea.

EU Rules Prevent Musk Takeover

O’Leary said Musk cannot take over Ryanair due to European Union regulations. EU rules prohibit foreign nationals from holding a majority stake in European airlines.

The CEO said Musk is welcome to invest in the publicly listed company like any other investor. O’Leary joked that Ryanair would be a better investment than Musk’s $44 billion acquisition of X, formerly Twitter.

O’Leary offered Musk a free ticket to thank him for the publicity boost. He described the attention from the feud as “wonderful” for the airline’s marketing.

Ryanair shares have risen over the past week during the public dispute. The stock increased 2.83% since Musk proposed acquiring the company.

On Wednesday, Ryanair closed at $70.45, up 1.37% for the day. The stock gained 3.89% in overnight trading after the press conference.

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