Ryanairs Financial Performance
By Sean Trosper
July 16, 2016
Southeastern Oklahoma State University
AVIA 5213,
AVIA ECON & FISCOL CTR
Ryanair’s Financial Performance
Ryanair is the definitive example of why the low cost, “no frills” airline business philosophy is booming in an ever slowing global economy. After suffering a rare dip in profit margin in 2014, Ryanair is now boasting a 66% boost in 2015, raising their net profit totals over the 1 million euro mark. This is an accomplishment that puts them in the same ranks as major airliners such as International Airlines Group (IAG) and Lufthansa. In addition, financial experts predict another 10% growth for the discount airliner in 2016. Ryanair is indeed living up to their “Always Getting Better” mantra. A decent percentage (roughly 20% according to some sources) of Ryanair’s income, as is the case with many of the leading discount airlines such …show more content…
The recent dip in oil prices has allowed the company to slash predicted fuel costs per passenger by almost 8% in 2016 and 16% in FY17. With the addition of at least 183 newer, more fuel efficient Boeing B737-800 aircraft to the fleet over the next 3 years, Ryanair is poised to maximize profit margins in the next fiscal period. According to their FY15 3rd quarter financial report, Ryanair’s cash reserves are high, totaling almost 450 million euros after expenses and its balance sheet ranks as one of the strongest in the industry. The 30th anniversary of Ryanair’s establishment brought a net profit of over 1 million euros with a decent asset to liability ratio of approximately 66%. This year, Ryanair’s financial board decided to sell it’s nearly 30% stake in another Irish airliner, Aer Lingus, to one of its rivals, IAG. This move not only boosted Ryanair’s profits for FY15, but also its share price by more than
By Sean Trosper
July 16, 2016
Southeastern Oklahoma State University
AVIA 5213,
AVIA ECON & FISCOL CTR
Ryanair’s Financial Performance
Ryanair is the definitive example of why the low cost, “no frills” airline business philosophy is booming in an ever slowing global economy. After suffering a rare dip in profit margin in 2014, Ryanair is now boasting a 66% boost in 2015, raising their net profit totals over the 1 million euro mark. This is an accomplishment that puts them in the same ranks as major airliners such as International Airlines Group (IAG) and Lufthansa. In addition, financial experts predict another 10% growth for the discount airliner in 2016. Ryanair is indeed living up to their “Always Getting Better” mantra. A decent percentage (roughly 20% according to some sources) of Ryanair’s income, as is the case with many of the leading discount airlines such …show more content…
The recent dip in oil prices has allowed the company to slash predicted fuel costs per passenger by almost 8% in 2016 and 16% in FY17. With the addition of at least 183 newer, more fuel efficient Boeing B737-800 aircraft to the fleet over the next 3 years, Ryanair is poised to maximize profit margins in the next fiscal period. According to their FY15 3rd quarter financial report, Ryanair’s cash reserves are high, totaling almost 450 million euros after expenses and its balance sheet ranks as one of the strongest in the industry. The 30th anniversary of Ryanair’s establishment brought a net profit of over 1 million euros with a decent asset to liability ratio of approximately 66%. This year, Ryanair’s financial board decided to sell it’s nearly 30% stake in another Irish airliner, Aer Lingus, to one of its rivals, IAG. This move not only boosted Ryanair’s profits for FY15, but also its share price by more than