Analyse Ryaniars Performance Since 2000

Ryanair

Analysing the performance of Ryanair since 2000

Introduction

Since its launch in 1984, Ryanair has become one of the fastest growing airline companies ever to have entered the industry. With a market capitalisation of $6.8 billion, Ryanair is now a prominent incumbent and its ‘low cost, no thrills’ service has proven to be the foundations of its success. This report will critically analyse data from various financial and literate sources to provide a comprehensive view of Ryanair’s performance, in comparison with its competitors, from the beginning of the 21st century.

Industry Growth ( Revenue) – Comparing Ryanair to Easyjet ( Fig 1)

The green and white bars on the graph illustrate the growth, in respect to revenue, for both Ryanair and

Analysing the graph we can see that Revenue’s for Ryanair have seen a gradual, but sustainable improvement over time from 2000 onwards and the same level of analysis would also be relevant for Easyjet. From the graph, we can also observe that there is an noticeable improvement in 2007 at the time of the financial crisis, Stefan cel mare in his journal ‘ USV annals of Economics and Public Administration’ (2012) provided reasoning for this arguing that ‘ negative influence was smaller on the larger low cost airlines.. the largest low cost operators such as Ryanair and Easyjet have adopted an investment strategy, based on creation of new routes, new branches, located in different countries, or on additional flights for the existing destinations’. Furthermore, through the continuous use of cheap lower-cost secondary airports, Ryanair has been able to sustain very low competitive prices on all of its routes and this has helped stimulate revenues at the expense of other higher cost competitors in the industry (BA). In addition, forecasted future revenues for both companies in 2013 look promising as revenues for Ryanair and Easyjet are $6.67 bn and $7.001bn respectively. Despite the seemingly good performance...