From Baron Funds' second quarter commentary:
Ryanair Holdings plc (RYAAY, Financial) 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)
Ryanair Holdings plc (RYAAY, Financial) 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)
