Ryanair: shares rise further on Frankfurt plans.
(CercleFinance.com) - Ryanair shares are firmly up for a second day in a row after the low-cost airline yesterday unveiled 20 new routes from Frankfurt airport.
Starting next winter, Ryanair will connect Frankfurt Main with several European business centres such as Barcelona, London, Lisbon, Madrid and Milan.
The seven new aircraft will mean an investment of 700 million dollars.
This morning, Credit Suisse says the company is stepping up its presence at Frankfurt to target business traffic.
Pointing out that Ryanair's competitors have seats that cost three times more than Ryanair's 2018 average fare of 38 euros; Credit Suisse sees a "five billion euros revenue opportunity".
"Ryanair is targeting a #2 market share in Germany with this expansion and we expect Lufthansa to look to match Ryanair expansion as it has done thus far at Frankfurt, suggesting pricing pressure in the market", the broker says.
Shares are up 1.2% at 14.45 euros today after rising by over 2% yesterday.
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