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Bad News at Ryanair

Ryanair lost 1/4 of its market value after announcing that it will meet profit targets for the first time in its history.
As Ryanair has quickly expanded its route network it has cut fares drastically (often charging $.01) to gain market share. Of course, this has led to lower margins. (I think they taught us this stuff in business school). Yields (average fares) will be 25-30% lower than they were in the same quarter last year. Now the CEO is saying that staff may not receive raises in ’05. Ouch.

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