Ryanair has expressed disappointment in its recent business performance, reflecting a similar sentiment among investors as the budget airline’s stock plummeted by 17%. This decline follows a quarterly earnings report that fell short of expectations, with revenue reported at €3.6 billion ($4 billion), remaining flat compared to the previous year. However, profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, substantial effort is required to achieve these numbers.
During the earnings call, O’Leary mentioned a 10% growth in passenger traffic, totaling 55 million, but emphasized that this growth is dependent on pricing strategies. He indicated that booking performance and close-in fares have been unexpectedly weak as the company approaches peak travel months of July, August, and September.
In addition to waning demand, Ryanair is grappling with rising labor costs and has pointed fingers at Boeing for delivery delays, which have been a longstanding issue for the airline. O’Leary has criticized Boeing’s performance in the past, despite standing by the manufacturer following an incident earlier this year with a 737 Max 9.
He also noted that customers seem to be feeling the financial strain more acutely now, as years of inflation and slowing economic growth impact consumers in the European Union. This situation may lead Ryanair to operate fewer aircraft in the near future, which O’Leary speculated might work to the airline’s advantage.
“We will have less capacity heading into summer 2025 than originally planned due to Boeing delivery schedules, followed by two years of minimal capacity growth,” he remarked. “If consumer pressure continues for the next year or 18 months, this may not be the worst scenario for us.”