Ryanair operates in a period of economic recession, but fortunately for Ryanair, casual and business passengers tend to prefer low-cost airlines over full-service airlines full as they try to cut expenses. return on cost. One of Ryanair's main concerns is the EU-US Open Skies Agreement, which opens the European market to US airlines. Increased completion would make it difficult for Ryanair to maintain its competitive advantage, particularly when these airlines operate in an environment with lower operating costs due to lower taxes and lower labor costs. Also customerThe level of oil prices has a critical impact on Ryanair's operations. The financial report reveals that the cost of fuel represents 34.1 percent of total operating expenses and with oil prices constantly fluctuating, Ryanair could have higher operating costs depending on price levels. Ryanair has used the fuel hedging strategy, but this could be beneficial when oil prices rise above the level at which the hedge is set and it could be disadvantageous when the price falls below this level. Ryanair has been pioneering in addressing this aspect by installing Winglets on aircraft to reduce fuel consumption. The government's decision to scrap its Irish travel tax would be an opportunity for Ryanair to lower its prices even further, making it even more competitive. Telegraph carried out a survey which reveals that Ryanair's low fare could actually be higher than its competitor when all add-ons are taken into account. It is in the best interest of the company to re-evaluate its marketing strategy so that this image does not become clear to customers as this could lead to a decline in sales.Social- Although Ryanair boasts of its customer service as being better.. .... middle of paper ...... determining factor when it comes to short-haul flights. Air travel is the fastest means of transportation, even compared to high-speed trains. Even for longer distances, rail fares do not compete with the low fares currently offered by airlines. Therefore, the threat of substitution is low.Overall summary of Porter's Five ForcesAnalysis of the industry according to Porter's Five Forces model shows that it is an attractive industry and Ryanair's position in the within the industry is strong. Barriers to entry are high, the threat of substitution is low, and the bargaining power of the supplier is relatively low given that airlines have the opportunity to make a profit. Even though the bargaining power of customers and the rivalry of existing competitors are high, Ryanair enjoys a competitive advantage due to its low cost of operation and the size of the market it controls..