Ryanair SWOT Analysis: Expects 20% yield decline and losses in 2H2010 on continued fare reductions

Ryanair stated it expects average fares will decline by up to 20% in 3Q2010 and 4Q2010, which would result in losses in both quarters (and hence for 2H2010). [3008 words]

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This report contains the following subheadings:

• 1H2010 profits up 70%; passenger numbers up 15%; fares down 17%
• STRENGTHS:  Growing traffic and profits, despite “difficult” economic conditions
• WEAKNESSES: Average fares and revenue per pax down by double digits; ancillaries show signs of stabilisation
• OPPORTUNITIES:  Moving network away from “high tax, high cost countries”
• THREATS: Boeing refuses to jump on the Team Ryanair bandwagon…for now
• “Growth during a Recession” to position Ryanair for post-recession opportunities, but expects 20% fall in yields

This report contains the following charts and tables:

• Ryanair profit after tax: FY06 to 1H10
• Ryanair financial highlights for six months ended 30-Sep-2009
• Ryanair financial highlights for three months ended 30-Sep-2009
• Lufthansa, Air France, KLM, British Airways and AEA passenger growth (% change year-on-year): Jan-2008 to Aug-2009
• Ryanair operating profit margin 1Q2005 to 2Q2010
• Ryanair fuel expenses as a portion of total operating expenses: 1Q2005 to 2Q2010
• Ryanair operating costs breakdown: 1H2009 vs 1H2010 (financial year ended 31-Mar)
• Ryanair financial highlights for six months ended 30-Sep-2009
• Ryanair passenger number and passenger load factor: FY2006 to 1H2010
• Ryanair ancillary revenue as a portion of total revenue: 1Q2005 to 2Q2010
• Ryanair fuel hedges for FY2009: as at Sep-2009
• Ryanair fuel hedges for FY2010: as at Sep-2009