Ryanair has expressed its disappointment with its recent business performance, and this sentiment is echoed by its investors. The Irish low-cost airline’s stock has seen a 17% decline following a quarterly earnings report that fell short of expectations. The airline reported revenue of €3.6 billion ($4 billion), remaining stable compared to the previous year, but profits plummeted by nearly half to €336 million. CEO Michael O’Leary noted that while passenger numbers have increased, attracting more travelers has required significant effort.
Despite a 10% rise in passenger traffic to 55 million, O’Leary pointed out that the growth is highly dependent on pricing strategies. The company has faced challenges with close-in fares and bookings, which have been weaker than anticipated, especially leading into the peak travel months of July, August, and September.
Alongside weaker demand, Ryanair is contending with rising labor costs and has criticized Boeing for ongoing delivery delays, a long-standing issue for O’Leary. Although he has defended Boeing after an incident with a 737 Max 9 mid-flight, he has urged the manufacturer to improve its performance over the years.
O’Leary also mentioned that consumers appear to be feeling the effects of prolonged inflation and slow economic growth within the European Union, suggesting that operating fewer aircraft could potentially benefit Ryanair in the long run.
“We will have less capacity going into summer 2025 than we initially scheduled with our Boeing deliveries, resulting in two years of essentially no capacity growth,” he explained. “If consumers are under pressure for the next year or 18 months, that might not be the worst situation for us.”