Ryanair has expressed dissatisfaction with its recent business performance, which has led to a 17% drop in its stock value following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), roughly on par with the previous year, but saw profits nearly cut in half, down to €336 million. CEO Michael O’Leary noted an increase in passenger numbers, which rose by 10% to 55 million, but indicated that this growth required significant effort to achieve.
During the earnings call, O’Leary acknowledged the challenges the company faces, stating that although customer traffic is up, it largely hinges on pricing strategies. He revealed that close-in bookings and fares have been unexpectedly weak as the airline approaches its peak travel months of July, August, and September.
In addition to softer customer demand, Ryanair is grappling with rising labor costs and has attributed some of its difficulties to delays in aircraft deliveries from Boeing, a recurring issue for O’Leary. While he has remained supportive of the company, he has also urged Boeing to improve its delivery performance.
O’Leary observed that European Union consumers are feeling the effects of inflation and slowing economic growth more acutely now than during the initial stages of recovery from the COVID-19 pandemic. As a consequence, he stated that the airline would have reduced capacity for the summer of 2025 compared to earlier delivery schedules from Boeing, and indicated that the next two years might see no growth in capacity at all. He suggested that this approach could be beneficial if consumers continue to face economic pressures in the coming months.