Ryanair has expressed its disappointment with recent business performance, leading to a 17% decline in its stock value after the release of a quarterly earnings report that fell short of expectations. The airline generated €3.6 billion ($4 billion) in revenue, nearly unchanged from the previous year, but profits saw a significant drop to €336 million. CEO Michael O’Leary noted that while passenger numbers increased by 10%, reaching 55 million, it required substantial efforts to achieve this growth.
During the earnings call, O’Leary commented on the challenges faced by the company, including the need to continuously lower fares and stimulate bookings. He indicated that the demand for close-in fares and bookings was disappointing as the airline approached the peak travel months of July, August, and September.
In addition to softer demand, Ryanair is grappling with rising labor costs and has also pointed fingers at Boeing over delivery delays, an ongoing issue for O’Leary. Despite maintaining a confident stance after a recent in-flight incident involving a 737 Max 9, he has persistently urged Boeing to improve its delivery performance.
O’Leary observed that consumers in the European Union appear to be increasingly strained by the effects of inflation and slow economic growth. This situation might inadvertently benefit Ryanair, as the company plans to adjust its capacity for summer 2025. He stated that the airline would operate with less capacity than initially planned due to the Boeing delays and anticipated no capacity growth for the following two years. O’Leary suggested that this could be a strategically advantageous position if consumer pressures persist over the next 18 months.