Ryanair Holdings share price up, to introduce business travel offer

Ryanair Holdings, Europes largest discount airline, revealed the latest step in its drive to attract business travelers, announcing the introduction of the “Business Plus” travel plan.

The new business-class tickets start from €70 and come with several perks, like unlimited flight changes, fast-track security checks and “premium seating”. A few footnotes pointed, however, that some of these will be subject to availability, while the quick checks would apply to only a select few airports.

“What business travellers want has changed,” said Kenny Jacobs, Chief Marketing Officer Ryanair. “Now customers want a reliable value-for-money service that gets you to your destination quicker, and to spend less time at the airport and more in meetings.”

He went on to add that the “premium seating” will be the same as the standard ones, but those located at the front and back of the aircraft, allowing for quicker boarding and leaving. “We won’t be installing different seats, and we won’t be putting up a curtain.”

The move comes as the Dublin-based company moves to acquire Cyprus Airways before Friday’s offer deadline. The Cypriot airliner has only 6 carriers, but would grant Ryanair better access to the eastern Mediterranean.

Ryanair turned out a hefty profit in the second quarter, and also plans to “aggressively” increase capacity as to meet its target of 120 million passengers yearly by 2022, up from the current 86 million, having orders for 180 new Boeing 737 aircraft.

“As Ryanair relentlessly increases capacity and gradually broadens its target markets, the legacy carriers will feel the pain,” Stephen Furlong, an analyst with Davy Stockbrokers in Dublin, said for Rueters.

Ryanair Holdings was up 2.91% to trade at €7.14 per share by 14:29 GMT, for a one-year growth of 9.54% and valuing the company at €9.60bn. According to a Financial Times survey, 22 analysts offering 12 month price targets for Ryanair Holdings have a median target of €8.00, with a high estimate of €9.90 and a low estimate of €7.10. The median estimate represents a 15.34% increase from the last price of €6.94.