Why Ryanair’s hard-nosed efficiency is a lesson for no-frill Indian air carriers like IndiGo

Subscribe to enjoy similar stories. Few industries anywhere in the world suffered the reputational damage that India’s airlines did in 2025. As the industry looks to reset, there is no better role model than Ryanair, the European low-cost carrier that is the most efficient and profitable airline in the world.

Its profit-after-tax margin for the six months ended 30 September was 25.9%, well ahead of Emirates’ 15.1%. Moreover, it flies four times as many passengers as Emirates does. Ryanair’s strength is its operational efficiency.

Having learnt its business model from the US budget carrier Southwest Airlines more than three decades ago, the Dublin-headquartered airline has taken its obsession with lowering costs to new levels. As its CEO, Michael O’Leary, told the Financial Times last week, “If I could get rid of everyone’s bags, I’d have a much better airline." Introducing baggage fees for everyone who checks-in luggage not only reduced the share of passengers checking bags in from 80% to 20%, it speeded up aircraft turnaround time at airports, now just 25 minutes. Ryanair charges people who don’t check-in online and doesn’t offer refunds on tickets bought.

There are listicles online of O’Leary quotes and this is a legendary one: “You’re not getting a refund so [bleep] off. We don’t want to hear your sob stories." The most revolutionary of the maxims Ryanair lives by is a plain-speaking contract with passengers. As the Wall Street Journal’s Benjamin Katz reported after an interview with O’Leary a few years ago, “He was very distinct in saying that ‘we don’t treat our customers like guests.