10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

Baron Funds Comments on Ryanair Holdings

August 24, 2012 | About:
Holly LaFon

Holly LaFon

From Baron Funds' second quarter commentary:

Ryanair Holdings plc (RYAAY) is an "ultra low cost" airline that flies 79 million passengers on 294 aircraft over 1,500 routes in Europe. Ryanair is Europe's largest airline with 11% market share, but its share is expanding as passengers continue to favor low-priced, no-frills travel. Ryanair is the most profitable airline in the world, generates the highest return on its invested capital, and has returned more cash to shareholders than any other airline. RYAAY operates the lowest per-passenger cost structure, by flying point-topoint service to non-congested airports, hiring non-union labor and outsourcing aircraft maintenance. Low costs and low fares stimulate demand on routes that become unprofitable for competitors, so Ryanair flies alone on over half its routes. Several competitors have consolidated or closed operations, a trend we think will continue, and we think Ryanair's incremental route gains should enhance profitability. We believe that Ryanair has an attractive, open-ended growth opportunity for the next several years. (Aaron Wasserman)

Rating: 4.0/5 (1 vote)


Please leave your comment:

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial