ifford trustnet . com
“ If the economy picks up and there ’ s a rapid increase in demand then , all of a sudden , a resource that was previously abundant becomes scarce ”
share price jumps as stock markets reassess the quality of their business . Ryanair offers an example . Before the pandemic , the vast majority of Europe ’ s 90 airlines were unprofitable and those making a surplus were only bringing in € 1 per passenger per flight . The exception was Ryanair . The company was making a profit of € 9 per passenger per flight before the pandemic , thanks to its focus on fuelefficient aircraft and minimising costs . While other airlines rely on business travel that may or may not rebound post-Covid , Ryanair focuses on leisure travel . Even if younger consumers give up short-haul flights to cut their carbon footprints , we believe northern European families will cut carbon from other parts of their lives before giving up their two weeks in the southern European sun . Another factor is management . While Ryanair chief executive Michael O ’ Leary is best known for generating lots of free publicity – some good headlines , some not so good – he ’ s also a fantastic steward of shareholders ’ capital . We want managers who focus on long-term shareholder value , rather than short-term share price fluctuations .
/ 19 /