Has Ryanair CE Michael O’Leary lost his cost-killing touch?

In 1995, soon after taking over as CE of Ryanair, Michael O’Leary wrote a characteristically plain-speaking memo. His mission to control costs would be “ruthless . . . at the expense of charm, style and elegance if necessary”. O’Leary has been true to his word: Ryanair’s hard-nosed culture has produced an airline with few frills but market-leading profitability and a superior valuation. But the carrier, which issued a profit warning this week and its shares dropped 11% in response, is suffering its most turbulent period, beset by strikes, high fuel prices and fiercer competition. Investors and industry figures are even asking whether Ryanair’s best days are behind it. One analyst at Bernstein reckons that last year’s net income of E1.45b “is an earning level they will not be reaching any time ever again soon”. <br/>