SWOT Analysis of Ryanair. Ryanair DAC is a low-cost carrier Irish Aviation Company. Tony Ryan, Liam Lonergan, and Christopher Ryan laid the foundation of Ryanair in 1984. The headquarter of the airline is in Swords, Dublin, Ireland.
Some of the main products and services of Ryanair are as follows;
- Pilot Training Programs
- Charter Aircrafts
- Commercial Flights
- Customer Service
- Travel insurance services
- Car hire
- Accommodation Services
Key statistical facts and figures about Ryanair are as follows;
- The annual revenue of Ryanair in 2022 was 5.581 billion US dollars
- Its growth rate was 192.11%
- Approximately more than 19000 employees are working for the company to manage its worldwide operations
Some of the top competitors of Ryanair are as follows;
- Pegasus Airlines
- Easy Jet
- Lufthansa Group
- British Airways
- Emirates Airlines
- Qatar Airways
- Fly Dubai
- American Airlines
Today, we’ll discuss the swot analysis of Ryanair. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the Irish airlines. Here’s the swot analysis of Ryanair as follows;
Strengths of Ryanair
Some of the main strengths in the swot analysis of Ryanair are as follows;
Destination & Routes
According to an estimate, Ryanair is operating its business in more than 40 countries in the Middle East, Africa, and Europe. It provides the highest number of routes of 1831 with over 225 destinations across the world. The highest number of routes shows the dominant market position of Ryanair in the aviation industry.
Ryanair has got a strong financial position. That’s why the investors of Business Daily increased the ratings of the aviation company to 83%. The RS Rating is the evaluating measure that analyzes the stock performance of various companies every 52 weeks. However, the 83% RS rating means that it is safe to invest in the company’s stock.
The business model of Ryanair is to offer low-cost air travel to customers worldwide. Along with low-cost air travel, the airline also offers non-essential customer services to amplify the customer experience. It helps the company to attract the attention of customers in the long term.
If we study the balance sheet of the company, then it shows the strong financial position of Ryanair. The annual revenue of the Irish brand in 2022 was 5.581 billion US dollars with a growth rate of 192%. The company has made significant progress after the pandemic crisis.
Ryanair has got aviation fleet of 450 airplanes; the CEO of the company plans to expand its fleet to roundabout 600 airplanes. According to a report by Forbes, the airline company has made a deal with Boeing for the order of 737 Max.
Weaknesses of Ryanair
Some of the main weaknesses in the swot analysis of Ryanair are as follows;
The pilot union of Ryanair has gone on 48-hour strikes, and the company didn’t receive a favorable ruling from the High Court to stop the strikes. The reason it happened was because they showed a lack of satisfaction with airline working conditions and minimum salaries.
According to a survey study based o 7901 participants, approximately 40% of the customers said that Ryanair would be their last choice for air travel. The airline has maintained a negative reputation in the aviation industry for the past 6 years. It is because the pricing structure of the company hides various types of costs from customers, and it annoys them later.
When the whole world was talking about masking and social distancing during the pandemic crisis; the CEO of Ryanair said that social distancing in the airline industry is stupid. It was a bold and controversial stand that the company took, it would show in the upcoming years whether it was right or wrong.
The other thing that infuriates customers about Ryanair is its refund policy. In case of refunding the air ticket, customers would receive only 5% of the refund. Instead of offering cash refunds, the company offers them cash refunds, and it dissatisfies various customers.
Opportunities for Ryanair
Some of the available opportunities in the swot analysis of Ryanair are as follows;
Many aviation industry experts and critics have suggested that the stock of airlines would grow exponentially after the removal of the air travel bans and other restrictions. It was absolutely true because we have observed significant growth in 2022 and 2023; it would continue to grow in the upcoming years.
During the lockdown of the businesses and airlines, many professionals in the airline industry became unemployed like engineers, cabin crew, ground staff, and pilots. Most of them are still available to re-enter the job market in the aviation industry. It is the perfect opportunity for the airline company to recruit talented and experienced professionals.
According to an estimate, roundabout 20 airlines have applied for bankruptcy. On the other hand, Ryanair has survived various economic recessions and international crises in different periods in history. It shows the strong financial and market position of the company to deal with various types of challenges.
Along with 53 other businesses and companies, Ryanair is taking support and benefits from the Bank of England due to the pandemic crisis loss. The company received roundabout 800 million Euros, the company could utilize such money for various types of projects.
Threats to Ryanair
Some of the potential threats in the swot analysis of Ryanair are as follows;
With advancements in technology and the internet, many businesses and companies are conducting meetings online. It has allowed them to cut down a significant amount of air travel expenses. It is not great news for their airline company, Ryanair.
Governments of different countries have got strict rules and regulations regarding the violation of their air boundaries. The recent pandemic crisis has made them even more air travel cautious, and the airlines have to follow strict protocols to enter any country.
Conclusion: Ryanair SWOT Analysis
After an in-depth study of the swot analysis of Ryanair; we have realized that Ryanair is the world’s leading Irish aviation company. If you are learning about the business of the airline company, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.