Ryanair has expressed dissatisfaction with its recent business performance, leading to disappointment among investors as well. The Irish budget airline’s stock has fallen by 17%, following the announcement of a quarterly earnings report that fell short of expectations. The company reported revenue of €3.6 billion ($4 billion), virtually unchanged from the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted that while passenger numbers are up 10% to 55 million, generating these figures has required significant effort.
During the earnings call, O’Leary stated that the airline is facing challenges as it tries to stimulate fares and bookings. He highlighted that close-in bookings have been disappointing, especially as the company approaches the busy summer months of July, August, and September.
In addition to lower demand, Ryanair is grappling with increased labor costs and has pointed fingers at Boeing’s ongoing delivery delays, which have been a persistent issue for O’Leary. Despite previously supporting Boeing after a mid-flight incident involving a 737 Max 9, he has urged the manufacturer to improve its operations.
O’Leary also mentioned that consumers appear to be feeling the strain as years of inflation and sluggish economic growth take their toll in the European Union. As a possible consequence, he foresees a scenario where operating fewer aircraft could be beneficial for Ryanair.
“We will have less capacity into summer 2025 than we were originally scheduled to have with our Boeing delivery, and then we face two years of essentially no capacity growth at all,” O’Leary said. “If the consumer is going to be under pressure for the next year or 18 months, that might not be the worst position for us.”