Ryanair has a labor problem, and it’s about to get worse.
The low-cost carrier said Monday that higher fuel costs, rising wages and strikes by pilots and regional air traffic controllers had caused its first quarter profit to drop 20% over the previous year.
Ryanair (RYAAY) has been giving pilots raises since recognizing the right of unions to negotiate on their behalf for the first time in December. Staff costs climbed 34% in the three months ended June 30.
Adding to the pressure on its business, strikes by regional air traffic controllers caused “widespread damage” and forced the airline to cancel over 2,500 flights in the first quarter.
With additional strikes scheduled for the …
Read the full article at: http://money.cnn.com/2018/07/23/investing/ryanair-results-pilot-strikes/
