Ryanair has expressed dissatisfaction with its recent business performance, leading to a 17% drop in its stock following a disappointing quarterly earnings report. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which is comparable to last year’s figures. However, profits saw a significant decline, nearly halving to €336 million. CEO Michael O’Leary noted an increase in passenger traffic, with a 10% rise leading to 55 million passengers, yet emphasized that this growth has come at a cost.
O’Leary mentioned during the earnings call that there is a strong need to continue stimulating fares and bookings, particularly as close-in bookings for the busy summer months of July, August, and September have not met expectations. The airline is also grappling with heightened labor costs and has been affected by delays in aircraft deliveries from Boeing, a recurring issue for O’Leary.
He remarked that customers seem to be facing more financial strain compared to the initial stages of recovery from the COVID-19 pandemic, with rising inflation and stagnant economic growth impacting consumers in the European Union. This situation might lead Ryanair to operate fewer jetliners, which O’Leary suggested could be advantageous.
“We will have less capacity into summer 2025 than we are originally scheduled to have with our Boeing delivery, and then we’re into two years of essentially no capacity growth at all,” O’Leary stated. “If the consumer is going to be under pressure for the next year or 18 months, that might not be the worst place to be.”