Ryanair Revenues

In: Business and Management

Submitted By fao1429
Words 1132
Pages 5
RYANAIR CASE: REVENUES ANALYSIS

1

According to the Profit & Loss accounts of Ryanair, the operating revenues are splitted into two categories: the scheduled revenues and the ancillary revenues. The scheduled revenues are generated through direct sales of flight tickets while the ancillary revenues1 are generated from other non-ticket sales. Figure 1 depicted the growth of the scheduled and the ancillary revenues from 2004 to 2011. While the scheduled revenues increases from
€ 924,5 mio to € 2.827,9 mio with an increasing return factor equals to 206%, the ancillary revenues increases from € 149,6 mio to € 801,6 mio with an increasing return factor equals to 436% during the period 2004 to 2011.
K€

3.000.000
2.500.000
2.000.000

Scheduled Revenues

1.500.000

Ancillary revenues

1.000.000
500.000
2004

2005

2006

2007

2008

2009

2010

2011

Year

Figure 1. Scheduled & Ancillary Revenues Growth from 2004 to 2011
During the same period, Ryanair has produced an average annual increase of the ancillary revenues of approximately 27%.
25%
22%

22%

2010

2011

20%
20%

18%
16%

15%

15%

2005

2006

16%

1 4%

10%

5%

0%
2004

2007

2008

2009

Figure 2. Ancillary Revenues as Percentage of Total Operating Revenues from 2004 to 2011

1

In the Airline industry, Southwest Airlines Company firstly introduced the ancillary revenues.
2

In Table 1, I have reported the evolution of the average scheduled and ancillary revenues with respect to the scheduled passengers.

Year

Scheduled
Revenues (K€)

Ancillary
Revenues (K€)

Scheduled
Passengers
(in Mio)

Average*
Scheduled
Revenue (€)

Average*
Ancillary
Revenue (€)

Average*
Revenue
(€)

2004
2005
2006
2007
2008
2009
2010

924.566
1.128.116
1.433.377
1.874.791
2.225.692
2.343.868
2.324.500…...

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