Ryanair has expressed disappointment in its recent business performance, and investors are feeling the same way. The Irish budget airline’s shares have fallen by 17% following the release of a quarterly earnings report that did not meet expectations. The company’s revenue remained stable at €3.6 billion ($4 billion), nearly identical to last year’s figures, but profits plummeted to €336 million, a drop of nearly half. CEO Michael O’Leary pointed out that while more passengers are flying with Ryanair, attracting them has required significant effort.
During the earnings call, O’Leary reported that traffic growth was robust, with a 10% increase to 55 million passengers, but he noted that this growth came at a cost. “We are having to stimulate fares and bookings repeatedly, and the last-minute bookings have been disappointingly weaker than anticipated, especially as we approach the peak months of July, August, and September,” he said.
In addition to weaker demand, Ryanair is grappling with rising labor costs and has once again criticized Boeing for its delivery delays. O’Leary has been vocal about his frustrations with the aircraft manufacturer, particularly following a recent mid-flight issue with a 737 Max 9.
He also mentioned that Ryanair’s customers are feeling more financial strain in the aftermath of COVID-19, as years of inflation and stagnant economic growth begin to impact consumers in the European Union. This could potentially result in Ryanair operating fewer aircraft.
“We will have less capacity in summer 2025 than originally scheduled due to delays in Boeing deliveries, leading to two years without any growth in capacity,” O’Leary stated. “If consumers are going to feel financial pressure for the next year to 18 months, being in this position might not be the worst outcome.”