Ryanair is expressing disappointment over its recent business performance, which has led to dissatisfaction among investors. The Irish budget airline’s stock has dropped 17% following a quarterly earnings report that fell short of expectations. Revenue remained steady at €3.6 billion ($4 billion), comparable to the previous year, but profits were nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying, attracting them requires significant effort.
O’Leary reported a 10% increase in traffic, bringing the total to 55 million passengers, but emphasized that this growth comes at a cost. He indicated that the company is compelled to frequently stimulate fares and bookings, especially as close-in fares have been disappointing, particularly leading into the busy summer months of July, August, and September.
In addition to lackluster demand, Ryanair is facing rising labor costs and has pointed fingers at delays in aircraft deliveries from Boeing, a long-standing issue for O’Leary. While he has defended Boeing after an incident involving a 737 Max 9 earlier this year, he has urged the manufacturer to improve its operations.
O’Leary also mentioned that his airline’s customers seem to be feeling the effects of inflation and a slowdown in economic growth within the European Union, which could work to Ryanair’s advantage in terms of capacity. He indicated that the airline would have less operational capacity in summer 2025 than initially planned due to Boeing delivery issues, followed by two years with essentially no growth in capacity. He remarked that if consumer spending remains under pressure for the next 12 to 18 months, this strategy might not be detrimental for Ryanair.