
Ryanair boss considers increasing staff bonus to tackle excess baggage ‘scourge'
The airline currently pays staff around 1.50 euros (£1.30) for intercepting customers who are bringing bags on to the aircraft.
It is reported that the bonus is capped at about 80 euros (£70) for each staff member per month.
Passengers are charged a fee of up to 75 euros (£65) for bringing luggage that is larger than they paid for while booking their journey.
Ryanair currently includes a small carry-on bag – capped at a size of 40x20x25cm and weight of 10kg – with every ticket.
Passengers must pay a fee if they want to bring larger luggage, or if they want to bring multiple bags.
Ryanair boss Michael O'Leary said on Monday that summer fares would, on average, be the same rate as 2023 – but added that he expects a boost in profitability for the airline by 'controlling costs'.
Members of the European Parliament are pushing for airlines to allow passengers to be allowed to bring on free an on-board personal item and small hand luggage.
However, Mr O'Leary predicted the proposal will not come into law due to a lack of space.
Speaking to the business news on RTE's Morning Ireland, he said: 'We're flying largely full flights, about half the passengers can bring two bags and the other half can only bring one – because that's all that fits in the plane.
'We're already struggling with that amount of baggage.
'That's one of the reasons we are so aggressive about eliminating the scourge of passengers with excess baggage.'
Mr O'Leary said more than 99.9% of passengers comply with baggage rules, with 'sizers' located within the airport.
He said: 'We are happy to incentivise our (staff) with a share of those excess baggage fees, which we think will decline over the coming year or two.'
The chief executive added: 'It is about 1.50 euro per bag – and we're thinking of increasing it, so we eliminate it.'
Meanwhile, Mr O'Leary predicted that US President Donald Trump will 'chicken out' of introducing increased tariffs for Europe on August 1.
Asked if he anticipated tariffs applying to Boeing aircraft being delivered to the airline, he said: 'Trump will probably chicken out again, I suspect the August 1 will get moved to September or October.
'We have taken delivery of five aircraft in the first quarter but no tariffs applied to those aircraft
'There is a risk of tariffs being introduced by the Europeans or the Americans in some tit-for-tat in August, September or October – but Boeing will have to pay those tariffs.'
Mr O'Leary said Ryanair would work with Boeing to ensure no tariffs are applied to commercial aircraft, which he said would be bad for the manufacturer's exports to Europe as well as Airbus's sales to the US – as well as the Irish aircraft leasing industry.
He added: 'There's increasing optimism, though, in Washington that commercial aircraft will be exempt from any tariffs – if Trump ever gets around to actually imposing tariffs.'
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Reuters
8 minutes ago
- Reuters
Out-gunned Europe accepts least-worst US trade deal
LONDON, July 27 (Reuters) - In the end, Europe found it lacked the leverage to pull Donald Trump's America into a trade pact on its terms and so has signed up to a deal it can just about stomach - albeit one that is clearly skewed in the U.S.'s favour. As such, Sunday's agreement on a blanket 15% tariff after a months-long stand-off is a reality check on the aspirations of the 27-country European Union to become an economic power able to stand up to the likes of the United States or China. The cold shower is all the more bracing given that the EU has long portrayed itself as an export superpower and champion of rules-based commerce for the benefit both of its own soft power and the global economy as a whole. For sure, the new tariff that will now be applied is a lot more digestible than the 30% "reciprocal" tariff which Trump threatened to invoke in a few days. While it should ensure Europe avoids recession, it will likely keep its economy in the doldrums: it sits somewhere between two tariff scenarios the European Central Bank last month forecast would mean 0.5-0.9% economic growth this year compared to just over 1% in a trade tension-free environment. But this is nonetheless a landing point that would have been scarcely imaginable only months ago in the pre-Trump 2.0 era, when the EU along with much of the world could count on U.S. tariffs averaging out at around 1.5%. Even when Britain agreed a baseline tariff of 10% with the United States back in May, EU officials were adamant they could do better and - convinced the bloc had the economic heft to square up to Trump - pushed for a "zero-for-zero" tariff pact. It took a few weeks of fruitless talks with their U.S. counterparts for the Europeans to accept that 10% was the best they could get and a few weeks more to take the same 15% baseline which the United States agreed with Japan last week. "The EU does not have more leverage than the U.S., and the Trump administration is not rushing things," said one senior official in a European capital who was being briefed on last week's negotiations as they closed in around the 15% level. That official and others pointed to the pressure from Europe's export-oriented businesses to clinch a deal and so ease the levels of uncertainty starting to hit businesses from Finland's Nokia ( opens new tab to Swedish steelmaker SSAB ( opens new tab. "We were dealt a bad hand. This deal is the best possible play under the circumstances," said one EU diplomat. "Recent months have clearly shown how damaging uncertainty in global trade is for European businesses." That imbalance - or what the trade negotiators have been calling "asymmetry" - is manifest in the final deal. Not only is it expected that the EU will now call off any retaliation and remain open to U.S. goods on existing terms, but it has also pledged $600 billion of investment in the United States. The time-frame for that remains undefined, as do other details of the accord for now. As talks unfolded, it became clear that the EU came to the conclusion it had more to lose from all-out confrontation. The retaliatory measures it threatened totalled some 93 billion euros - less than half its U.S. goods trade surplus of nearly 200 billion euros. True, a growing number of EU capitals were also ready to envisage wide-ranging anti-coercion measures that would have allowed the bloc to target the services trade in which the United States had a surplus of some $75 billion last year. But even then, there was no clear majority for targeting the U.S. digital services which European citizens enjoy and for which there are scant homegrown alternatives - from Netflix (NFLX.O), opens new tab to Uber (UBER.N), opens new tab to Microsoft (MSFT.O), opens new tab cloud services. It remains to be seen whether this will encourage European leaders to accelerate the economic reforms and diversification of trading allies to which they have long paid lip service but which have been held back by national divisions. Describing the deal as a painful compromise that was an "existential threat" for many of its members, Germany's BGA wholesale and export association said it was time for Europe to reduce its reliance on its biggest trading partner. "Let's look on the past months as a wake-up call," said BGA President Dirk Jandura. "Europe must now prepare itself strategically for the future - we need new trade deals with the biggest industrial powers of the world."


Telegraph
8 minutes ago
- Telegraph
Russian tourists flock back to Europe
Russian tourists are returning to Europe in growing numbers, despite the war in Ukraine, with France, Italy and Spain their favoured holiday destinations. The three travel hotspots are all Nato and EU members and have imposed sanctions on Moscow. Hotel stays by Russians in Italy and France surged by more than 19 per cent in the past year, which Ukrainian diplomats branded 'disturbing' and a security risk. But France, which spearheads the 'coalition of the willing' nations supporting Ukraine with Britain, defends keeping borders open to rich Russian tourists, as does Italy. The trend was revealed by Telegraph analysis of data on hotel room stays and rentals on websites such as and Airbnb, and of visas issued to the EU's Schengen free-movement zone. Vsevolod Chentsov, Ukraine's ambassador to the EU, warned that ignoring the returning Russians would be 'short-sighted' and dangerous. He told the Telegraph: 'In the fourth year of Russia's war of aggression against Ukraine, it is extremely surprising to see statistics showing an increase in the number of visas issued to Russian citizens and a growth in tourist traffic from Russia to EU countries. 'We know that Russian society overwhelmingly supports the war. Moreover, it prefers to think that Russia is at war with the West and not with Ukraine, where the Russian army commits war crimes on massive scale.' He added: 'With increasing number of Russia's cyberattacks against EU member states, acts of sabotage and all sort of hybrid activities aimed at undermining European democracies, it is disturbing that Russian citizens can easily enjoy the benefits of travelling to Europe. 'Continuing to ignore this reality is short-sighted. It's a matter of European security.' Fires in warehouses known to be part of logistical supply chains have taken place across Europe, including in Britain, while there have also been reports of sabotaged train tracks. In the past, Russian spies posing as diplomats would be linked to these incidents, but since the 2018 poisoning of the Skripals, Moscow is known to also deploy agents on tourist visas. Stop EU visas for Russians Sir William Browder is an American-born English financier turned anti-Putin activist and campaigner. He urged France, Italy and Spain to stop issuing visas to Russians. 'Unless the Russians can demonstrate in a visa interview that they're opposed to the Putin regime, they shouldn't be allowed to come to Europe,' he said. European capitals have hit the Kremlin with waves of sanctions since Putin launched his illegal invasion in 2022. Both Britain and the EU closed their airspace to Russian airlines, triggering a drop in tourist numbers. There are still dozens of routes to Europe through Turkey, Georgia, Serbia and other countries. In order to get to Rome, for example, a Russian tourist would have to stop over in Turkey or the UAE and switch flights. The additional costs put the trip out of the reach of most ordinary Russians, but those that do make it to Europe also face difficulties because of the sanctions, which means their bank cards don't work. However, Istanbul's Ataturk airport is brimming with currency exchanges where Russians can swap roubles for euros to sustain their visits to Europe. 'There are many Russians who support the war, and particularly the Russians who have money,' Sir William said. 'What we absolutely don't want to do is allow these Russians to enjoy the privileges and resources of Europe, while at the same time they're supporting Putin's war efforts.' 'Europe should be open for people in the Russian opposition who are being persecuted, but no visa should be issued to Russian oligarchs or mini-garchs and others who support Putin, and I think we should err on the side of non visa issuance in that respect.' He said refusing visas would put pressure on Putin's regime and lessen the security risk posed by Russia's hybrid war against the West. Sanctions undermined Sir William said EU governments had to be consistent because if one country grants a Schengen visa, the supposed tourist can travel anywhere in the passport-free zone. Western governments have been reluctant to issue outright travel bans, except in the case of sanctioned individuals such as Putin's cronies and apparatchiks. In contrast, the Baltic nations and pro-Ukraine countries bordering Ukraine and Russia stopped issuing tourist visas to Russia or heavily restricted their numbers. Jan Lipavsky, foreign minister of the Czech Republic, accused those welcoming Russian holidaymakers of undermining the EU's sanctions against Moscow in return for wealthy tourists' cash. He told The Telegraph, 'It is deeply troubling to see some EU countries returning to business as usual with Russian tourists while Ukraine continues to suffer under brutal aggression. 'Czechia has taken a principled stance – we do not process any tourist visa applications and we believe this should be the standard across the European Union.' Mr Lipavsky said the numbers of tourists coming to the EU last year was 'totally excessive' and raised serious concerns 'not only from a security standpoint, but also from a moral one'. He said, 'At such volumes, we cannot rule out the possibility that individuals complicit in war crimes are among those vacationing in our resorts. That is unacceptable.' He added, 'I also see that some countries have a self-interested motive – they want the income from Russian tourism. It's not just about visa fees; it's about money spent on hotels, shopping, tickets and so on. Russians are known to spend a lot. 'This undermines the credibility of our sanctions regime and sends a confusing message about our values.' Lifeline for dissidents Andrei Soldatov is a senior fellow with the Center for European Policy Analysis think tank and a Russian investigative journalist specialising in the activities of the Kremlin's secret services. He said the visas were valuable for dissidents and families that wanted to visit them abroad. He said, 'it is a problem which doesn't have a simple solution. These are also the countries which help people with anti-Kremlin views move out. 'To make it safe for these people one needs to hide their applications in a stream of other applications. One cannot really expect a Russian dissident to come to a foreign embassy for a 'dissident visa', given the high level of repression in the country.' Popular locations Across the EU, visitor numbers are just a tenth of what they were in 2019, before the pandemic and the invasion, but this varies substantially across the bloc. In 2024, just six EU countries saw an increase in guest nights booked by Russians via websites such as Airbnb, according to figures from Eurostat. Italy saw the largest increase of 18.9 per cent, with 321,678 guest nights across the year, the highest in Europe. France remains the third most popular location for Russian tourists with 203,072 guest nights per year, which is an increase of 7.8 per cent - the fourth highest spike in Europe. Spain is second at 259,068 guest nights, down 3.6 per cent from the previous year, according to the figures obtained from the EU's statistics agency. There was a rise of 13 per cent in the number of nights booked by Russians in Hungary, which has a government that is notoriously soft on Putin. The UK, whose data differs slightly from the EU's, would rank seventh on the list for Russia visitors after Italy, Spain, France, Portugal, Greece and Cyprus. Unlike France and Italy, Britain saw its visitor numbers fall by around 1.3 per cent year-on-year, according to data from the Office for National Statistics. Other statistics, which look at nights across hotels rather than Airbnb-style websites, suggest that France is hosting 27 per cent of the level it was in 2019, compared to just 9.8 per cent in the United Kingdom. The UK has always required Russian tourists to apply for visas, including when it was part of the EU. It never joined Schengen. Schengen members also require that Russians obtain visas. There was an agreement, which made it faster and cheaper to obtain those tourist visas to enter the EU but it was suspended after Putin invaded Ukraine. Analysis of Schengen area visas also showed that Italy and France were leading the tourism rapprochement with Russia. Italy issued 152,254 Schengen area visas at its two Russian consulates last year, which was almost 19,000 more than in 2023. France issued a total of 123, 890, according to European Commission figures, 25,000 more than the year before. Spain issued 111,527, an increase of 15,000. Figures first reported by the EU Observer website showed a rebound in Schengen visas for Russians with 552,630 issued in total last year, an increase of nine per cent. Greece issued 59,703 visas and Hungary 23,382. Rome and Paris unrepentant 'Italy continues to regularly issue visas to Russian tourists who meet our requirements,' A spokesman for Antonio Tajani, the Italian minister of foreign affairs and deputy prime minister, said. 'Our opposition is to the Russian army's military operations in Ukraine, not to the Russian people.' The Elysée was presented with the statistics but did not respond to requests for comment. France has previously defended issuing visas to Russians. 'People-to-people relations and cultural ties can play a positive role in fostering mutual understanding and dialogue between populations,' the French foreign affairs ministry told EU Observer. 'We work hard at maintaining a differentiation between the regime responsible for the war and the population, its civil society, and the opposition,' it said. 'It is essential to maintain this window, to enable Russian society to get access to a plurality of reliable sources of information.' The British and Spanish government were asked for comment. The European Commission said they could not comment, despite being given 72 hours notice, because it was summer. Eurostat, the EU's statistics body, has collected data on the number of guest nights spent in 'collaborative economy platforms', which includes sites such as Airbnb and Expedia since 2018. The UK's Office for National Statistics has collected similar data since mid-2023, meaning pre-invasion figures are not available and there might be minor methodological differences between the two bodies. Data on broader hotel stays across Europe have not been updated for the entirety of Europe in 2024.


Reuters
8 minutes ago
- Reuters
Euro gains as investors cautiously welcome US-EU trade deal
NEW YORK, July 27 (Reuters) - Investors cautiously embraced news of a trade deal on Sunday between the U.S. and European Union that is expected to bring clarity for companies and some certainty to markets ahead of U.S. President Donald Trump's Friday tariffs deadline. The euro rose against the U.S. dollar , up 0.27% at $1.177. The currency also gained 0.2% against both the pound and the Japanese yen . Trump announced the United States has struck a framework trade deal with the EU that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment. European Commission President Ursula von der Leyen said the deal includes "cars, semiconductors and pharmas." The deal is similar to parts of the framework agreement the U.S. clinched with Japan last week. "It's really in line with the Japan deal, and I assume investors will view it positively as they viewed the Japan deal," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. Optimism over easing trade tensions broadly helped push U.S. stocks to record highs last week and lifted European shares to their highest since early June. Trump's April 2 "Liberation Day" announcement of sweeping global tariffs sent stocks plunging in the immediate aftermath, due to spiking fears about a recession that have since faded. "I don't think equities in particular needed much of an excuse to rally and now they've got one," said Michael Brown, senior research strategist at Pepperstone in London. Still, investors have been bracing for increased volatility heading into August 1, which the U.S. has set as a deadline for raising levies on a broad swath of trading partners. "We will need to see how long the sides stick to the deal. From a market perspective, it is reassuring in the sense that having a deal is better than not having a deal," Eric Winograd, chief economist at investment management firm AllianceBernstein, said about the EU agreement. The announcement came after Von der Leyen traveled to Scotland for talks with Trump to push a hard-fought deal over the line.