Ryanair has expressed dissatisfaction with its business performance, leading to disappointment among investors. The Irish budget airline’s stock has fallen by 17% following the release of a weaker-than-expected quarterly earnings report. Revenue remained at €3.6 billion ($4 billion), unchanged from the previous year, while profits nearly halved to €336 million. CEO Michael O’Leary noted that although more people are flying with Ryanair, the airline is having to make significant efforts to achieve this.
O’Leary stated during the earnings call that while traffic has increased by 10% to 55 million passengers, the growth comes at a cost. He mentioned the need to stimulate fares and bookings due to disappointing close-in fares and performance, particularly ahead of the busy months of July, August, and September.
In addition to facing softer demand, Ryanair is contending with rising labor costs and has criticized Boeing for ongoing delivery delays, which have been a persistent issue for O’Leary. Despite recently supporting Boeing after an incident with a 737 Max 9, he has continually urged the manufacturer to rectify its delivery problems.
O’Leary also pointed out that Ryanair’s customers are feeling the impact of inflation and slower economic growth in the European Union, which may lead to fewer aircraft in operation. He projected that the airline would have less capacity for summer 2025 than initially planned due to Boeing’s delivery issues, and he anticipates two years without capacity growth. He suggested that this could be beneficial if consumers are under financial pressure in the upcoming year or 18 months.