QUOTE AND NEWS
The Economist  Apr 20  Comment 
THREE years ago, taking just one flight with Ryanair would be enough to send a shiver down the spine of a European business traveller. The prospect of back-to-back flights with the airline—planning your own connections with no insurance against...
guardian.co.uk  Apr 12  Comment 
As corporate jet services go, this was more prosecco class than champagne but it might take off with groups of sport fans There is no scrum at the boarding gate and enough legroom to tap dance in. This is Ryanair, but not as we know it. With the...
guardian.co.uk  Apr 12  Comment 
Airline ramps up charm offensive by reducing 108 payment options to six as it reports a 37% rise in half-year profits Ryanair is overhauling its complicated and expensive baggage charging policy in one of the biggest changes at the airline since...
guardian.co.uk  Apr 8  Comment 
Airline launches broadside over fact that eDreams, a travel booking firm, is displayed first on Google searches for Ryanair Ryanair has launched a new broadside against Google in its battle with other websites selling its flights, accusing the...
newratings.com  Apr 4  Comment 
DUBLIN (dpa-AFX) - Ryanair (RYA.L, RYAAY) reported that its March traffic grew 28% to 8.5 million customers. Load factor rose 4% points to 94%. Ryanair's Kenny Jacobs said: "These record monthly numbers were delivered due to our lower...
Flightglobal  Mar 31  Comment 
Europe s largest short-haul airline Ryanair was once a byword for cheap fares and indifferent customer service. Its extensive route network often provided the only direct overseas air link to and from towns in distant corners of the continent, and...
BBC News  Mar 21  Comment 
Ryanair and Easyjet urge governments and the European Commission to take action over the strike by French air traffic controllers.
newratings.com  Mar 15  Comment 
DUBLIN (dpa-AFX) - Ryanair Holdings Plc. (RYA.L, RYAAY) Tuesday said it would open a new base at Vilnius Airport, from October 30, with two aircraft, at an investment of $200 million. The company said its its Vilnius traffic grew by 16...
Wall Street Journal  Mar 13  Comment 
To win back disgruntled passengers, Ryanair has relaxed onerous hand-luggage restrictions, redesigned its cumbersome website and cut fees.




 

Ryanair is a low cost airline that offers point-to-point service on more than 1,100 scheduled short-haul flights per day to over 147 locations throughout Europe and all over the world.It carried approximately 58.6 million passengers in the fiscal year 2009. In 2009, it had €2.71 billion in revenues, an increase of approximately 8.4% from 2008. Ryanair did, however, report that it incurred a net loss of €169.2 million in 2009 after earning a net income of €390.7 million in 2008. The Airlines is based on a low-fee, structure, for which the ability to secure low-cost labour, services, and jet-fuel are essential. Although it has limited costs by negotiating low fees with many airports, it remained subject to rising fuel costs. To decrease costs, the company has specifically chosen many of its destination airports because they have low fee structures or because the company was able to negotiate lower airport fees. The company earns most of its revenue in euro or sterling and has many of its expenses in dollars; however, it has hedged against currency fluctuations to minimize the risk it is exposed to.

Ryanair offers more than 1,100 scheduled short-haul flights per day to more than 147 locations throughout Europe and Morocco, with 26 locations in the United Kingdom and Ireland. The company carries approximately 45.5% of all scheduled traffic between London and Dublin, its primary route. In 2009, Ryanair incurred a net loss of €169.2 million on €2.94 billion in total revenue. This represents a 143.3% decrease in net income from €390.7 on €2.23 billion in total revenue during 2008.Ryanair operates through one reportable operating segment. It analyzes its revenues by geographical area in two segments: Airport charges, or fees that airlines must pay in order to use airports, are rising significantly throughout many of Ryanair's hubs. Although the company was often able to arrange lower fees than rival carriers through legal action, choosing airports that are further away from destinations than standard airports, and brash negotiations, fees are now increasing as a result of contract expirations, challenges from competitors, and airport authority decisions. Because being able to negotiate low airport costs constitute an important part of Ryanair's low cost-structure, Ryanair consistently fights price increases in court in an effort to keep its costs down. One such example is being played out at Stansed Airport in 2008. An April 2008 increase of Stansted's airport charges by 15% has caused Ryanair to enter into legal action against the British Airport Authority; however, the company has stated that it does not believe that it will win the legal action. , "Ryanair expects to lose BAA battle", August 8, 2008, The increase in prices at Stansted airport has now become a factor in the companies decision to cut some service from that airport. , "Ryanair grounds aircraft with winter cuts," July 18, 2008, The company has decided to ground 15 aircraft operating on the Dublin-Stansted route during the winter starting in the 2008-2009 year. In total, it grounded approximately 250 flights at Stansted's airport. "Ryanair warns of potential losses", July 28, 2008, If airport charges increase to the point that a route is no longer profitable or sustainable, as they did at Stansted, Ryanair will cut those unprofitable flights, which could decrease profits if more suitable routes are not found. Over one third of Ryanair's operating expenses are allocated to jet fuel expenses - fluctuations in Oil prices directly impact RYAAY's profitability. Ryanair's revenues are primarily denominated in U.K. pound sterling and especially the Euro. Ryanair buys jet fuel and other supplies in US dollars, so an increase in the U.K. pound and Euro's value against the dollar is beneficial for the revenue of the company. After the Open Skies Treaty of 1992 created freedom of air transportation within the European Union, the number of low cost carriers ("LCCs" within the European Union increased dramatically. Ryanair competes with these other LCCs in Europe, like EasyJet,Air Berlin, and Vueling Airlines.

References

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