In Real World7.2, we saw that Ryanair’s break-even point varied from 70 percent to 73 percent over the five-year period. Why was it not the same each year?

Real World7.2

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BE at Ryanair Commercial airlines seem to pay a lot of attention to their BEPs and their 'load factors', that is, their actual level of activity. Figure 7.7 shows the BEPS and load factors for Ryanair, the 'no-frills' carrier. We can see that Ryanair made operating profits in each of the five years considered. This is because the airline's load factor was consistently greater than its BEP. 100 80 Per cent 72 83 33 32 82 12 70 60 60 10 40 40 20 20 72 88 72 33 93 94 73 0 2013 2014 2015 2016 2017 Break-even point Load factor