Ryanair has expressed disappointment in its business performance, a sentiment echoed by investors as the airline’s stock plummeted by 17% following a disappointing quarterly earnings report. The Irish budget carrier reported revenues of €3.6 billion ($4 billion), virtually unchanged from the previous year, while profits nearly halved to €336 million. CEO Michael O’Leary noted that while the airline has successfully increased passenger numbers by 10% to 55 million, it has required significant effort and fare stimulation to achieve this growth.
O’Leary acknowledged that the demand has softened, particularly in the run-up to the peak summer months of July, August, and September, stating that close-in fares and bookings are weaker than anticipated. The company is also facing higher labor costs and continuing issues with delays in aircraft deliveries from Boeing, a recurring frustration for O’Leary.
He added that Ryanair’s customer base seems to be feeling more pressure than earlier in the economic recovery from the COVID-19 pandemic. With inflation and sluggish economic growth impacting consumers in the European Union, O’Leary suggested that operating with fewer aircraft might ultimately benefit Ryanair.
Looking ahead, he indicated that the airline would have less capacity available in summer 2025 than initially planned due to Boeing delivery delays, and there would be no growth in capacity for at least two years. O’Leary remarked, given the expected consumer pressure over the next year to 18 months, this situation might not be as detrimental as it appears.