Ryanair is expressing disappointment in its business performance, which has also led to investor dissatisfaction. The Irish budget airline’s stock has dropped by 17% following the release of a quarterly earnings report that failed to meet expectations. The company’s revenue stood at €3.6 billion ($4 billion), reflecting no growth from the previous year, while profits plummeted nearly 50% to €336 million. CEO Michael O’Leary indicated that while passenger numbers have increased, attracting them is becoming increasingly challenging.
During the earnings call, O’Leary noted that traffic growth rose by 10%, bringing the total to 55 million passengers, but emphasized that this growth comes at a cost. He mentioned the need to continuously stimulate fares and bookings, with particular concern over disappointing results in close-in fare performance as the peak months of July, August, and September approach.
The airline is facing additional challenges such as rising labor costs and delivery delays from Boeing, a recurring issue for O’Leary. Despite previously supporting the company after a mid-flight incident with a 737 Max 9, he has repeatedly urged Boeing to improve its delivery timeline.
O’Leary also pointed out that customers are beginning to feel the impact of prolonged inflation and stagnant economic growth in the European Union, suggesting that reducing the number of aircraft in operation could be beneficial for Ryanair. He revealed that the airline anticipates having less capacity in summer 2025 due to Boeing delivery issues, which could potentially be a strategic advantage if consumer pressure continues over the next year or 18 months.