Ryanair has expressed disappointment in its recent business outcomes, which has also led to investor dissatisfaction. The Irish low-cost airline’s shares have plummeted by 17% following the release of a quarterly earnings report that fell short of expectations. Revenue remained steady at €3.6 billion ($4 billion), the same as the previous year, but profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, achieving this growth has required significant effort.
“Traffic growth is strong, increasing by 10% to 55 million passengers, but it comes at a cost,” O’Leary stated during the earnings call. He commented on the need to consistently lower fares and stimulate bookings, adding that close-in fare performance has been weaker than anticipated, especially as the company approaches its peak months of July, August, and September.
In addition to subdued demand, Ryanair is contending with rising labor costs and has pointed fingers at Boeing’s delivery delays, a persistent issue for O’Leary. Despite facing challenges, including an incident earlier this year with a 737 Max 9, O’Leary has urged Boeing to improve its operations.
He indicated that Ryanair’s customers seem to be feeling the effects of prolonged inflation and stagnant economic growth within the European Union, suggesting that a reduction in fleet capacity could benefit the airline. “We will have less capacity going into summer 2025 than we originally planned due to Boeing’s delivery schedule, and we are facing two years with essentially no capacity growth,” O’Leary said. “If consumers are going to face financial pressures over the next year or 18 months, this situation may not be as detrimental as it could be.”