RYANAIR

Analysis of Ryanair share price

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Elements that can influence the price of this asset:

Analysis N°1

The growth in the European market is a key element that should be prioritised in your analyses.

Analysis N°2

We also recommend monitoring the creation of new company bases in the European Union as well as the introduction of new routes.

Analysis N°3

The Ryanair Group is also trying to develop in the business class market and actions taken in this direction should be noted.

Analysis N°4

We would of course also recommend the surveillance of the growing competition in this activity sector, notably the market shares of its direct competitors in the low cost flights sector such as EasyJet or Vueling which are increasing making their presence felt on this market.

Analysis N°5

Finally, we also recommend the monitoring of current legislation in the countries where Ryanair exercises its activities and particularly those outside the European Union. This legislation can sometimes restrict the profits of the group through a direct impact on its marketing strategy.  

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General presentation of Ryanair

The Irish company Ryanair is a low-cost airline that offers air transport at low prices. Most of the company’s turnover is generated by the transportation of passengers but the company also offers services such as the selling of charters, on board services and car rental.

The group has currently a fleet of 308 planes.

Ryanair share price is currently listed on the Irish Stock Exchange main market in Ireland. The company Ryanair is also part of the ISEQ Irish stock exchange index.

Analysis of Ryanair share price
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The major competitors of Ryanair

The group Ryanair is classified as a low-cost airline. As such, it is not in direct competition with the major traditional airlines nevertheless it faces some serious competitors that exercise in its same category. We invite you to find out more about the competition in this sector of activity with the list of Ryanair main competitors:

Air Berlin

is a serious European competitor for Ryanair which occupies the first place in this market.

Easyjet

is another one of Ryanair’s mains competitors.

Germanwings

is the third and last serious competitor of the group.

Air France

You should also notice that Air France could also pose a threat to Ryanair with its low-cost flights by its subsidiary Hop. 

Other competitors

However, you should also take into account the competition from other companies such as Tuifly, Norwegian, Transavia, Vueling and Wizz Air.


The major partners of Ryanair

Paypal

In 2014, Ryanair joined PayPal, which now offers to customers of the low-cost airline the option of paying for their airline tickets online by using their PayPal account.

Hertz

Ryanair was also a favorite partner of the rental car company Hertz for more than 20 years, but this partnership ended in 2016.

Norwegian

In 2017, Ryanair announced a partnership with its competitor Norwegian in order to feed its transatlantic flights through Ryanair’s medium and short haul flights towards the airports where its aircrafts departures take place.

Air Europa

That same year, Ryanair also signed a partnership with the group Air Europa to offer long haul flights departing from Madrid towards around twenty different destinations, on its website. The establishment of a correspondence between the two companies is expected to take place in 2018.

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The factors in favour of a rise in the Ryanair share price:

The Ryanair Group notably distinguishes itself from its competitors in this activity sector by its high quality customer service and positive relationship with consumers. Due to this strategy the company benefits from a highly regarded brand image and can therefore attract numerous travellers searching for low cost flights that still offer good quality service. 

The shareholders and stock market investors also appreciate the superior financial profits of this share price from a financial and stock market point of view. The profits from this asset regularly display significant growth increases and particularly over short term periods.

Another strategy implemented by the Ryanair Group to maintain its profitability and market share is called Yield Management and consists of a wide price flexibility. The company can thereby attract clients from different consumer sectors without losing on its margins.

Ryanair has also shown no hesitation in investing significantly in the purchase of new airplanes aimed at increasing its range of air routes and thereby accelerating its growth over the coming years. For example it recently ordered 100 Boeing 737 Max airplanes which will be introduced into its air fleet from 2019 with beneficial traffic growth prospects expected from 2024.  

Finally the Ryanair Group is also a group that has heavily invested in its innovations to hold its position on the market. It has notably developed management strategies for its short haul flights. The group is also the originator of the low cost flights sector in Europe.

The factors in favour of a drop in the Ryanair share price:

Firstly, we know that the company recently, and at several times, has been accused of sub-standard social policies. Of course, these different scandals which were widely noted by the media were in many instances related to the work conditions of its onboard personnel and negatively affected the brand image of this company which had a harmful influence on its sales.

Although the Ryanair company has been successfully internationalised it still remains strongly dependent on the British and Irish markets. This of course represents a major risk for its future profitability and could present certain problems in the case of an economic crisis in one of these countries.  

Finally, the last negative point that we can cite here relates to the strong seasonal aspects of the Ryanair company’s activities which depend greatly on tourist popularity. The group therefore relies on major profits in the summertime rather than all year round.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What are the key figures for the Ryanair Company?

There are a few important figures to know about Ryanair that can help you understand and analyse this value. We know that the fleet of this low cost airline currently consists of 370 aircraft. The number of destinations served by the company is 225. Finally, the Ryanair group currently employs nearly 17,500 people across the world.

When and how was Ryanair created?

It was in 1985 that the airline Ryanair was founded in Dublin by an Irish businessman named Thomas Anthony. The nickname of its creator, 'Tony Ryan' gave the name to the company. The creation of the group was made in collaboration with the owner of the tour operator Club Travel, Liam Lonergan and with a starting capital of 1.30 € and only 25 employees. At that time, Ryanair only offered one airline between Dublin and London Airport.

When are the important reports of the Ryanair group published?

As is the case for all global companies, the Ryanair group publishes its financial reports on an annual and quarterly basis. The results for the annual financial year are generally published at the start of the following year and several revised results and interim targets are also made public throughout the year, i.e. quarterly.

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