Ryanair set back
alot of chat about Ryanair challenges after the announcement of profit declines today and future outlook.
This is an opportunity for Ryanair, they will strip out other costs to become even more lean an operation. Yes there are challenges but the hedging holiday will soon be over for its competitors and Ryanair is best placed to weather the storm due to a strong bank balance and a fast acting management team. This will be an opportunity for MOL to buy lots of shares cheap in the company and these will grow in value as the company rebounds.
Furthermore, there are loads of opportunies in many of Ryanairs markets, they have barely touched the business community in many countries, ie penetration of primary airports, so desperate times will force MOLs hand on this.
As regards a comment that I read above saying that in a challenging economy Ryanair struggle, this has not been the case. Ryanair have progressed the most in challenging times. In hard times people have less money and hence are more price conscious so they will often be led to Ryanair rather than the more expensive competition.
Ryanair will continue to grow and meet its objectives of size and volume by 2012.
I think think that things will be a lot clearer when we get through the winter?