Ryanair has expressed disappointment in its recent business performance, which has led to investor dissatisfaction as well. The stock of the Irish low-cost airline has dropped by 17% following the release of a quarterly earnings report that fell short of expectations. The company reported revenue of €3.6 billion ($4 billion), roughly on par with last year’s figures, but profits plunged nearly 50% to €336 million. CEO Michael O’Leary noted an increase in passenger traffic, up by 10% to 55 million, but emphasized that this growth comes at a cost.
O’Leary mentioned during the earnings call that while traffic growth is promising, it necessitates significant efforts to attract customers. He pointed out that fare stimulation and booking rates have been disappointing, particularly leading into the busy summer months.
In addition to softer demand, Ryanair is facing rising labor costs and has cited Boeing’s delivery delays as a contributing factor to its troubles. Despite defending the company’s response to a mid-flight incident involving a Boeing 737 Max 9 earlier this year, O’Leary has been vocal about his frustrations with Boeing’s performance.
Furthermore, O’Leary remarked that Ryanair’s customers seem to be feeling the strain of ongoing inflation and sluggish economic growth within the European Union. This situation may lead to Ryanair operating fewer aircraft than initially planned for summer 2025, with the airline entering a period of no capacity growth for the next two years. O’Leary suggested that if consumer pressures persist over the coming year to 18 months, this might actually benefit Ryanair in the long run.