Ryanair is expressing disappointment in its recent business performance, a sentiment echoed by its investors, as the Irish budget airline’s stock declined by 17% following a quarterly earnings report that fell short of expectations. The company’s revenue remained stable at €3.6 billion ($4 billion), comparable to the previous year. However, profits dropped significantly, nearly halving to €336 million. CEO Michael O’Leary noted that while passenger numbers increased by 10% to 55 million, achieving this growth required significant effort and price adjustments.
O’Leary described the bookings for peak months like July, August, and September as disappointing, indicating that the airline needed to stimulate fares and bookings more than initially anticipated. In addition to facing weaker demand, Ryanair is dealing with rising labor costs and ongoing issues with Boeing, particularly its delivery delays, which O’Leary has criticized for years.
O’Leary also observed that customers seem to be experiencing greater financial strain compared to the early days of the COVID-19 recovery. Given the economic challenges within the European Union, he suggested that a reduction in flight capacity might benefit the airline in the long run. He mentioned that Ryanair would have less capacity available for summer 2025 than initially planned due to Boeing’s delivery issues, leading to two years without capacity growth. O’Leary concluded that if consumers are under financial pressure for the next year or 18 months, this situation might not adversely affect the airline.