Ryanair is expressing disappointment with its recent business performance, which has also left investors feeling let down. The Irish budget airline’s stock has plummeted by 17% following the release of a quarterly earnings report that was weaker than anticipated. The company reported revenue of €3.6 billion ($4 billion), nearly identical to last year, but profits plunged nearly 50% to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, it requires significant effort to achieve those numbers.
Despite a 10% increase in traffic, reaching 55 million passengers, O’Leary indicated that this growth comes at a cost. The airline is compelled to frequently adjust fares and boost bookings, reporting disappointing close-in fares and performance as it approaches the peak travel months of July, August, and September.
In addition to softening demand, Ryanair is facing higher labor costs and has criticized Boeing over delivery delays, which have been a persistent issue for O’Leary. Although he has defended the company following an incident involving the door plug on a 737 Max 9 during a flight, he has long urged Boeing to improve operations.
O’Leary also suggested that customers of the airline seem to be feeling the effects of ongoing inflation and slowing economic growth within the European Union, stemming from the challenges experienced during the early stages of the COVID-19 recovery. He mentioned that having reduced capacity going into summer 2025, compared to initial plans with Boeing, could ultimately be beneficial if consumer pressure continues over the next year to 18 months.