QUOTE AND NEWS
News.com.au  Oct 28  Comment 
SWEDES will now enjoy a 0 per cent interest rate after its central bank cut back rates. Meanwhile, budget airline Ryanair faces millions in fines.
guardian.co.uk  Oct 28  Comment 
Airline loses appeal and must pay fines and damages after employing 127 local staff on Irish contracts Ryanair faces an 8.3m (£6.5m) penalty after losing an appeal against a ruling that it breached French labour laws by employing 127 local staff...
BBC News  Oct 28  Comment 
A French court rules that Irish low-cost airline Ryanair must pay €8.1m in damages and €200,000 in fines for breaches of French labour laws.
Market Intelligence Center  Oct 16  Comment 
Option-trade picking algorithms patented by MarketIntelligenceCenter.com found a trading opportunity with Ryanair PLC (RYAAY) that should provide a 5.22% return in just 65 days. Sell one Dec. '14 call at the $50.00 level for each 100 shares of...
Market Intelligence Center  Oct 13  Comment 
The patented option trade-picking algorithms behind MarketIntelligenceCenter.com's Artificial Intelligence Center have selected a covered call trade on Ryanair PLC (RYAAY) that includes 3.38% downside protection. Sell one contract of the Dec. '14...
MarketWatch  Oct 7  Comment 
Rio Tinto shares climb after news that Glencore approached the miner about a possible takeover.
Times Online  Oct 7  Comment 
A Ryanair plane had the tip of its wing knocked off today after it clipped another Ryanair aircraft on the runway...
Market Intelligence Center  Oct 6  Comment 
After closing Friday at $56.55, Ryanair PLC (RYAAY) presents an attractive opportunity to get a 2.33% return in just 165 days, which is an annualized return of 5.14% (for comparison purposes only). To enter this trade, sell one Mar. '15 $55.00...
newratings.com  Oct 2  Comment 
DUBLIN (dpa-AFX) - Irish low-cost airline Ryanair Holdings Plc. (RYA.L, RYAAY) reported Thursday that its passenger traffic and load factor for the month of September increased from last year, reflecting lower fares and improving customer...




 

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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