Ryanair has expressed disappointment with its recent business performance, which has led to a 17% drop in its stock value after the release of an unexpectedly weak quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion (approximately $4 billion), nearly unchanged from the previous year, but profits plummeted by almost 50% to €336 million. CEO Michael O’Leary noted that while the airline is attracting more passengers—up by 10% to 55 million—it faces challenges in maintaining pricing stability.
During the earnings call, O’Leary remarked that despite strong traffic growth, the airline is having to significantly incentivize fares and bookings. He acknowledged that demand closer to peak travel months has been disappointing, particularly for July, August, and September.
In addition to reduced demand, Ryanair is grappling with increased labor costs and has pointed fingers at Boeing for ongoing delivery delays, a source of frustration for O’Leary. While he has defended the airline following a mid-flight incident with a 737 Max 9 earlier this year, he has been critical of Boeing’s performance for some time.
O’Leary also mentioned that consumers in the European Union are feeling the impact of persistent inflation and slow economic growth, which may affect Ryanair’s operations. He indicated that the airline would reduce capacity for summer 2025 compared to earlier schedules for Boeing deliveries, suggesting that the lack of growth in capacity over the next two years might not be detrimental, especially if consumers continue to face financial pressures in the coming year to 18 months.