Ryanair says online sparring with Musk is good for business

[DUBLIN] Ryanair Holdings’s chief executive officer said his online sparring with Elon Musk this past week has been good for business.

Bookings have risen 2 to 3 per cent in the aftermath of the social media brawl between the corporate titans, Michael O’Leary said on Wednesday (Jan 21) at a press conference in Dublin. As a result, he is “very happy to continue the controversy.”

“If it helps to boost Ryanair sales, you can insult me all day, any day,” O’Leary said.

Shares rose as much as 2.1 per cent in early trading in Dublin.

The outspoken CEO has a history of courting controversy to drum up sales, either via outlandish comments about politicians or publicity stunts.

The volley of insults started Jan 14 after O’Leary said Ryanair would not install SpaceX’s Starlink Wi-Fi service across the fleet because the weight and drag from the antenna mounted on the cabin’s roof would add to fuel costs.

In response, Musk called O’Leary “misinformed” in a post on X.com, to which O’Leary hit back by calling Musk an “idiot.”

O’Leary said the purpose of Wednesday’s previously scheduled press conference was to “address/undress Elon Musk Twitter tantrum.” Ryanair then launched a “Big ‘Idiot’ Seat Sale” offering 100,000 seats starting at about US$20.

“Thank you to Mr Musk,” he said. “Any of these spats are great for bookings.”

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Ryanair has had discussions with various Wi-Fi providers, including Starlink, Amazon.com and Vodafone Group. There currently is not an efficient business model for inflight Wi-Fi that passengers would be prepared to pay for, O’Leary said, but he was optimistic the technology will improve.

Starlink could hike Ryanair’s fuel costs by at least 150 million euros (S$225.4 million) a year, O’Leary said. Ryanair is holding off on installing broadband access until they can provide it for free. He’s had no direct contact with Musk, he said.

“We live in a hyperconnected world, and people will ultimately have free access to Wi-Fi onboard short-haul aircraft,” he said.

When asked if Musk could buy the airline, O’Leary said that would not be possible. But he encouraged the Tesla CEO to invest in the business.

Under European Union regulations, Ryanair must be majority owned and controlled by EU nationals since it’s a European airline. The Irish airline was co-founded by the late Tony Ryan in 1984 and is now the continent’s largest discount carrier.

O’Leary also said it’s “reasonable to assume” traffic will grow to 215 million passengers from 207 million during the next 12 months.

Meanwhile, Ryanair also expects to take delivery of its first Boeing 737 Max 10 planes in January 2027, which moves the date forward a few months from his original estimate. BLOOMBERG