Ryanair has expressed disappointment in its recent business performance, reflected in a 17% drop in its stock price following a weaker-than-expected quarterly earnings report. The Irish budget airline’s revenue remained stable at €3.6 billion ($4 billion), similar to the previous year. However, profits were significantly reduced, nearly halving to €336 million. CEO Michael O’Leary indicated that while more people are flying with Ryanair, attracting these passengers requires considerable effort.
During the earnings call, O’Leary highlighted a 10% increase in passenger traffic, bringing the total to 55 million, but emphasized that this growth comes at a cost. He noted challenges in stimulating fares and bookings, particularly leading into the peak months of July, August, and September, where close-in bookings have been disappointing.
In addition to fluctuating demand, Ryanair is confronting rising labor costs and has also pointed fingers at Boeing for its ongoing delivery delays, a long-standing issue for O’Leary. Although he has stood by Boeing following a mid-flight incident with a 737 Max 9 earlier this year, he has consistently urged the manufacturer to resolve its issues.
O’Leary conveyed concerns that passengers might be feeling the impact of sustained inflation and economic slowdowns within the European Union, which could force Ryanair to adjust its operations. He mentioned that the airline would have less capacity in the summer of 2025 than previously planned due to Boeing’s delivery setbacks, and there would be two years of minimal capacity growth. He suggested that if consumer spending continues to be under pressure, this situation may ultimately benefit Ryanair.