I fly around Europe for €30-€100 per return flight without a checked bag. Yet Ryanair are one of the most profitable airlines in the world yet charging such cheap prices. Are other airlines just not as efficient as low cost airlines?
In: Economics
Ryan Air carries 169million passengers a year, making a profit of €1.3bl. A profit of less than €10 per ticket.
British Airways (for example) passenger traffic is 37million, with a profit of £1.16bl. Actually much more profitable, more money fewer flights.
The short answer is Ryan Air serves an entire continent, the largest and richest market in the world – the EU and the UK. National airlines serve relatively small European countries, and can’t compete on the sheer amount of flights, but are generally more profitable on a per ticket basis. It’s not really accurate to say that Ryan Air is more profitable – it’s just serving more flights.
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