Ryanair is expressing disappointment over its recent business performance, leading to dissatisfaction among its investors. The Irish budget airline has seen its stock drop by 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue remained steady at €3.6 billion ($4 billion), comparable to the previous year, but profits nearly halved to €336 million.
CEO Michael O’Leary noted that while more passengers are flying with Ryanair, generating this demand has come with significant effort. He highlighted that traffic growth was robust, with a 10% increase to 55 million passengers, but emphasized that this was only achievable at a price. During the earnings call, O’Leary remarked on the disappointing close-in fares and bookings, particularly as the company enters its peak months of July, August, and September.
Additionally, Ryanair is contending with softer demand, rising labor costs, and ongoing issues with Boeing’s delivery delays. O’Leary has long criticized Boeing for its shortcomings, despite having defended the airline after an incident involving a 737 Max 9 earlier in the year.
O’Leary also conveyed concerns about the financial struggles of Ryanair’s customers, indicating that inflation and stagnating economic growth within the European Union are beginning to impact travel. He suggested that a reduced number of jetliners might benefit Ryanair amid these challenges.
“We will have less capacity into summer 2025 than we originally scheduled due to Boeing deliveries, which means we won’t see any capacity growth for the next two years,” O’Leary stated. “If consumers face pressure over the next year or 18 months, being in this position might not be the worst outcome.”