Business Analysis

Ryanair SWOT Analysis

Ryanair's SWOT analysis highlights the main strengths, weaknesses, threats, and opportunities the company has in the market.

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Ryanair has been a Leading Low Fare Airline in Europe which was established in 1985 in Ireland. Ryanair has seen a tumultuous run since then. It has been rated one of the worst airlines. However, the customer numbers are still growing. So, the low cost of the travel and 1851 destination routes might be the reasons for the improving business of Ryanair. Let’s see how Ryanair is doing in the airline industry in 2022 despite its strengths, weaknesses, opportunities, threats, and prospects. The Ryanair SWOT Analysis is as follows: 

Ryanair's Strengths

· An expanding fleet. In an era where the airlines are suffering due to the ban on international travel due to the COVID-19 pandemic, Ryanair is one of the only airlines expanding its fleet. As per CEO Michael O'Leary, the company currently has 450 aircraft and aims to expand its fleet to 600 aircrafts. He further aims to expand his Boeing 737 MAX fleet, which most airlines are shrinking due to increased maintenance costs. 

· A strong financial stance. In 2021, the company ended the year with a cash equivalent of 3.8 billion Euros. The company further estimated its profits to reach 1 billion Euros in 2022. The low costs of operations and traveling have attracted many more customers for Ryanair. 

· Business Model. Although the airlines across the globe suffered in the pandemic and had to cut down resources and staff to cut down the costs, Ryanair already has minimal expenses due to its cap on expenses which are non-essential. 

· The highest number of Routes. For Ryanair, the other competitive strength is the highest number of routes. The company offers flights to over 1831 destinations, while American Airlines provides routes for only 1106. This difference offers Ryanair a commanding benefit alongside its low-cost traveling options.

· A low-cost airline.  One of Ryanair's major strengths in the airline industry is its low costs to the consumers and the low operational costs. It gives the company a big edge in the market. Despite being affected by the pandemic in 2020, the company aims to break its 190 million consumer record in 2022, while other airlines estimate their recovery until 2023. 


· Rising competition. One of the major competitors of Ryan air includes Easy Jet. The company has been expected to make profits for the first time in 25 years. The major reason is the increase in the quality of the services. Ryanair needs to counter this competition. 

· Issues in return policy. Customers have shown displeasure over the fact that the company is sluggish in its return policy. It only processed only 5% of the return applications in 2021. The limited-time coupons are given to the customers, which expire if the customers don't avail them. 

· Layoffs during the restructuring. In 2019, the company stopped 99 percent of its aircraft operation from conducting the restructuring. It also laid off 3,000 people. This poses great challenges for the company to sustain its business operations. 

· Controversies. Ryanair is also running in troubling water with controversial statements since the pandemic's start. The company's CEO, Michael O'Leary, said it is dumb to run an airline while keeping social distancing a priority. It is just one example that has seen severe criticism from the experts and the public. 

· Bad Reputation to amend. Ryanair has been an airline that has seen its fair share of lousy reputation in the past. It has been ranked worst with a customer satisfaction score of 40%. The company has been in tumultuous times and Reputation due to its complex pricing method and unclear pricing strategy. Customers are unaware of some hidden charges, which are a significant source of customer dissatisfaction. 

· Strikes over working conditions. Employee issues have also been persistent in Ryanair. The company could not get a favorable decision from the High Court to end the 48-hour strike, which was started by the pilot union. The lack of improvement in the working conditions has led to the displeasure of the worker's union. 

Ryanair's Opportunities

· Aid from UK Government. Ryanair has been able to bounce back from the repercussion of the COVID-19 pandemic due to assistance from The Bank of England's COVID Corporate Financing Facility. With the 800 million Euros loan, the company could get back on its feet to start operating much sooner than other airlines. 

· Survival and resilience due to low costs. CNN estimated that over 20 airlines filed for bankruptcy during significant global political and economic crises. Ryanair's low-cost business model has allowed it to endure the 2008 financial catastrophe, Brexit, and the rise in fuel prices. So the company can endure any catastrophe that its competitors cannot. 

· Hiring policy. Ryanair can hire the best professionals in the aviation industry if it makes its policies employee friendly by increasing focus on CSR activities and employee incentives. 

· Airline market crisis. Companies like Airbus are cutting down employees to deal with cost issues, so there are chances for Ryanair to maximize its business due to its low-cost model. 

Ryanair's Threats

· Government regulation. Ryanair will be facing significant issues in operations due to the government regulations on social distancing for traveling.

· Rising Taxes. Irish government regulation taxes are increasing, posing a threat for Ryanair. 

· Restrictions for COVID-19. With over 1851 routes, Ryanair covers the world. With COVID-19, half of its destination is closed for travel. 

· Lack of Employee Trust. The Company needs to employ policies that allow employees to trust the company. A high-quality working environment and incentives have to be given to the employees. 

· Inconsistency in operation. A lack of consistency in policies and operations all over the globe will hurt the revenue and reputation of the company. 

Ryanair's SWOT Analysis Mind Map

A Mind map is given as follows to offer a comprehensive analysis of the Ryanair SWOT analysis for our readers. With Ryanair, the increase in quality of services and employee management programs are integral to success. The Mind Mapping for the Ryanair SWOT analysis is as follows:

Ryanair SWOT Analysis mind map

Figure 1 Ryanair SWOT analysis Mind Mapping

Key Takeaways

Ryanair’s customer numbers are still growing. So, the low cost of the travel and 1851 destination routes might be the reasons for the improving business of Ryanair. Ryanair's SWOT Analysis report highlights that Ryanair is in troubling waters despite its increasing fleet and increased flow of customers. The concerns of the employees and customers need to be addressed better to create a competitive edge in the market. Focus on CSR activities and sustainable practices are also required. You can download this report from PDF Agile and save it for later. 

Download the report 

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