The following was originally written on August 12, 2010. It summarizes the investment thesis for Ryanair (RYAAY). I’ve owned shares of Ryanair shares since mid-December 2009.
Overview
Ryanair is an airline based in Ireland and is Europe’s largest low-fare airline. Led by CEO Michael O’Leary, Ryanair has continuously lowered average fair prices while maintaining profitability and a good balance sheet and while guaranteeing never to add a fuel surcharge to fare prices. Among a few of Ryanair’s notable achievements:
- Ryanair carries the largest amount of international traffic in the world—73.5 million passengers this past year;
- Ryanair has the largest coverage in Europe with 42 bases, 155 airports, 26 countries, over 1,100 routes, and over 1,300 daily departures;
- Ryanair has the most on time flights, fewest lost bags, and fewest cancellations of flights;
- Ryanair has the lowest average fare price in Europe, charging $45 per ticket while the next closest low fare competitor charges an average of $66 and the flag carriers like British Airway and Lufthansa charging an average of $362 and $291 respectively;
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