Ryanair boss: Britain is not taking risks of no-deal Brexit seriously

Ryanair boss Michael O’Leary on Monday claimed the risk of the UK flying into a hard Brexit is being “underestimated”, adding to a list of woes for the budget airline.

His comments about Britain crashing out of the bloc with no deal, came with a warning of potential job losses as the airline grapples with strikes and higher oil costs.

Outspoken chief executive O’Leary said: “We remain concerned by the danger of a hard (‘no-deal’) Brexit in March 2019.”

He added: “Though there is a view that a 21-month transition agreement from March next year will be implemented, we believe that the risk of a hard Brexit is being underestimated.”

In the event of no-deal, Ryanair may be forced to restrict the voting rights of all non-EU shareholders. Unlike other industries, aviation has no World Trade Organisation rules to fall back on if the UK and EU fail to reach a deal.

O’Leary has warned that some flights could stop for a period from next April if a new Open Skies agreement is not made a priority in Brexit negotiations.

The airline boss joins other business leaders in voicing concerns. It emerged today that Amazon’s UK head Doug Gurr said in a meeting with new Brexit Secretary Dominic Raab that a no-deal could lead to “civil unrest”.

Theresa May’s latest financial services plan has come under fire from Brussels.

The uncertainty marks the latest headache for Ryanair. The no-frills carrier said profits fell 20% to €397 million (£354 million) in the first-quarter, hurt by higher fuel costs.

It is trying to bounce back from a rota fiasco last September that led to pilot shortages and some 20,000 flights being cancelled. That resulted in Ryanair finally recognising some trade unions.

In the first-quarter, 2500 flights were cancelled, largely because of strike action on the Continent. The firm said there could be job losses if “unnecessary strikes continue to damage consumer confidence”.

Neil Wilson, chief analyst at Markets.com, called the three months to June “brutal” for the airline.

Ryanair said average fares will be lower than expected during the summer owing to high competition, a heatwave in northern Europe and uncertainty about pilot strikes.

Shares fell 0.72 euro cents, or 4.5%, to €14.8.