Questor share tip: Time to land some profits from high-flying Ryanair The survey also showed that strategists expect the FTSE 100 to fall over the next quarter, hitting 5,695 by mid-2012. The effects of central banks' efforts to increase liquidity through asset purchases are likely to fade over the next few months, so this makes sense. There are also issues relating to fuel costs for all airlines, despite hedges being in place. With the current brinkmanship with Iran, these are not going to go away. Yesterday, Caroline Bain, an analyst at the Economist Intelligence Unit, said she expected prices would stay high. "We expect some softening in global economic growth in the second quarter after a strong start to the year, particularly in the US and China," Ms Bain said. Because of higher oil prices, Ryanair made the decision to reduce capacity last year. "As previously guided, Ryanair's 2011-12 winter traffic was expected to decline by approximately 5pc as we sit up to 80 aircraft on the ground due to higher oil prices," the group said. Passenger numbers fell by 6pc in January and 2pc in February. Because oil is priced in dollars, eurozone airlines have also been hit harder than their US peers by price rises. Bloomberg has calculated that jet fuel prices have risen by 9pc in dollar terms, but by 14pc in euros. There could also be some effect from the Government's tax grab. Air Passenger Duty (APD) was raised by 8pc from Sunday, twice the rate of inflation. Aviation bosses have argued that the rise won't be the last and noted that the Treasury's revenue from APD is set to grow 46pc by 2016. All-in-all, Ryanair's strategy is sound. However, Questor feels that the valuation is getting a bit rich considering there could be some headwinds in the next few months. Indeed, the average price target of the 20 City analysts monitored by Bloomberg is €4.72, which is 5pc above the current share price. The shares are trading on a March 2013 multiple of 13.3. Although another special dividend is likely in 2013, no dividend is expected to be paid this year. The shares were first recommended as a buy at €2.84 on November 3 2009 and they are up 78pc since then, compared with a FTSE 100 up 16pc. Investors should bank profits and sell.