Ryanair Revenues

Ryanair Revenues

RYANAIR CASE: REVENUES ANALYSIS



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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.

3.000.000 2.500.000 2.000.000 1.500.000 ... Show more content on Helpwriting.net ...The following figure gives the total ancillary revenue for Top 10 airline companies.

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3.530 2.612 Ancillary Revenue 1.379 1.087 834 801 654 426



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Figure 3. Top 10 Airlines Total Ancillary Revenue for 2011 Fiscal Year Ancillary revenue as a percentage of total revenue provides a better measure of ancillary aggressiveness and marketing acumen. This method of measurement allows low–cost carriers to dominate the top–10 list.



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29,2% 22,6% 22,1% 21,0% 20,5% 19,2% 18,7% 18,1%



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Figure 4. Top 10 Airlines: Ancillary Revenue as a % of Total Revenue for 2011 Fiscal Year Ancillary revenues are already an integral component of the airline industry's operations. The airlines that execute ancillary revenue strategies best continue to be low cost carriers. More than twenty percent of Ryanair's revenue is generated from ancillary revenues and mainly through the A–La–Carte Fees. Nevertheless, as pointed out by AirsavingS3: The most obvious

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