Ryanair shares have dropped by 13% this year due to warnings from the company that the profits were going to drop. In the large scale we might look upon this issue as some of the people who have sold their shares due to the expected decline in profits, however drop in profits is not necessary bad for the company.

The company has often been criticized for making the passengers pay extra fees once and prior to the flight, which are not included in the ticket price. Such extra fees include oversize baggage and additional fee for late boarding time. However if we look at this issue from the side of Ryanair we can see that the company is encouraging people to follow the rules of the airline and at the end of the day the people who complain are people who have not followed the rules.

Another interesting aspect is that despite the warnings that the profits would go down is that people should focus more on the costs. Due to the bad economy costs will drop and Ryanair would continue dropping its costs, which in first place are already pretty law. At the end of the day, Ryanair actually might start making more profits in the long run. The drop in shares and the great emphasis on the issue might just be another part of the media overreacting.

Article: http://www.bbc.co.uk/news/business-24800604