Ryanair has expressed disappointment with its recent business performance, leading to a 17% drop in its stock following a quarterly earnings report that fell short of expectations. The airline reported revenue of €3.6 billion ($4 billion), which is nearly unchanged from the previous year, while profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted that while more passengers are using their services—up 10% to 55 million—the company is facing significant challenges in stimulating fares and bookings.
During a recent earnings call, O’Leary highlighted the difficulties in achieving close-in bookings, which were weaker than anticipated as the busy summer months approach. Increased labor costs and Boeing’s continued delivery delays are adding to the company’s woes. Despite having defended Boeing in the past, O’Leary has been openly critical of the manufacturer for its performance.
The economic landscape also poses challenges for Ryanair, as customers in the European Union seem to be feeling the pressure of rising inflation and slowing economic growth. O’Leary suggested that operating with fewer aircraft by summer 2025, due to the delays in Boeing deliveries, might not be detrimental if consumer demand remains under strain in the coming months. He indicated that the lack of capacity growth may ultimately benefit Ryanair during this uncertain period.