Ryanair has expressed disappointment in its recent business performance, leading to a 17% decline in its stock value following a less-than-expected quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion ($4 billion), nearly unchanged from the previous year, but profits were cut nearly in half to €336 million. CEO Michael O’Leary noted that while the number of passengers flying Ryanair increased by 10% to 55 million, the airline is forced to work hard to fill its planes.
During the company’s earnings call, O’Leary highlighted the challenges faced due to growing operational costs and disappointing close-in fares and bookings, particularly leading into the peak travel months of July, August, and September. He attributed some of the struggles to higher labor costs and ongoing delivery delays from Boeing, which has been a long-standing issue for him.
O’Leary also indicated that consumers may be feeling the pressure from inflation and stagnant economic growth in the European Union, which could necessitate a reduction in the number of aircraft in the coming years. He stated, “We will have less capacity into summer 2025 than we originally scheduled to have with our Boeing delivery, and then we’re into two years of essentially no capacity growth at all.” He suggested that this may not be a disadvantage if consumer demand remains weak in the near future.