Turnaround · Ireland · 1984–2024
Ryanair: copying Southwest and going further
Nearly bankrupt in the early 1990s, Ryanair adopted Southwest's model, added aggressive fees and secondary airports, and became Europe's largest airline by passengers.
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
by the numbers
- Founded
- 1984
- Model adopted from Southwest
- early 1990s
- Passengers (fiscal 2024)
- about 184 million
- Average fare
- around €40
What happened
Ryanair was founded in Ireland in 1984 and struggled through its early years with losses. In 1991 Michael O'Leary, then an adviser, visited Southwest Airlines and brought its model back: one aircraft type, fast turnarounds, and no-frills service.
Ryanair went further. It flew to small, cheap secondary airports, often receiving incentives from them; it charged for bags, seat selection, and printing boarding passes; and it sold fares from very low prices to fill planes, earning more from extras. Its blunt, controversial PR generated free publicity.
By fiscal 2024 Ryanair carried about 184 million passengers a year, more than any other European airline, with average fares of around €40.
Timeline
- 1984
Ryanair founded.
- 1991
O'Leary studies Southwest.
- 1997
IPO; EU aviation deregulation opens routes.
- 2016
Becomes Europe's largest airline by passengers.
what made it work
- Copied a proven model and adapted it.
- Low base fares plus ancillary revenue.
- Secondary airports cut costs.
- Deregulation opened new routes.
the lesson
Copying a proven model from another market — and pushing it further — can be a winning strategy.
Apply it to your business
- 1Study the best model in another country or industry.
- 2Separate a low base price from paid extras.
- 3Look for cheaper alternatives to expensive inputs.
Laws at work in this story
Figures are rounded and drawn from public reports, company filings and widely cited coverage at the time. Check the company's latest filings before relying on any number.