Ryanair is expressing dissatisfaction with its recent business performance, reflecting a similar sentiment among investors, as the airline’s stock has dropped by 17% following the release of a disappointing quarterly earnings report. The company reported revenue of €3.6 billion ($4 billion), which is roughly the same as last year, but profits significantly decreased to €336 million. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, the company is expending considerable effort to attract them.
Traffic figures are encouraging, with a 10% increase to 55 million passengers, yet O’Leary emphasized that this growth comes at a cost. He highlighted the need for ongoing fare and booking incentives, pointing out that recent trends in close-in fares and bookings have been weaker than anticipated, especially heading into the peak travel months of July, August, and September.
Additionally, Ryanair is grappling with inflated labor costs and ongoing delivery delays from Boeing, a recurring issue that has frustrated O’Leary for years. Despite having defended Boeing after a mid-flight incident involving a 737 Max 9, he continues to pressure the manufacturer for improved performance.
O’Leary also indicated that Ryanair’s customers seem to be facing greater financial challenges compared to earlier in the post-COVID recovery period. Reports suggest that prolonged inflation and stagnant economic growth are beginning to affect consumers in the European Union. This situation may lead to a reduction in the number of aircraft Ryanair operates.
“We will have less capacity in summer 2025 than we originally planned due to Boeing’s delivery issues, and we will see two years of limited capacity growth,” O’Leary stated. “If consumers are under financial strain for the next year to 18 months, maintaining less capacity may not be the worst scenario for us.”