Ryanair has expressed dissatisfaction with its recent business results, leading to a 17% drop in its stock following a quarterly earnings report that fell short of expectations. The airline’s revenue remained steady at €3.6 billion ($4 billion), consistent with last year, but profits plummeted to €336 million, nearly half of what they were previously. CEO Michael O’Leary noted that while more passengers are flying with Ryanair, the airline is having to exert significant effort to achieve this growth.
O’Leary highlighted that passenger traffic increased by 10%, bringing the total to 55 million, but emphasized that this growth comes at a cost. He remarked on the need to continually adjust fares and sales strategies, as bookings closer to travel dates have not performed as well as anticipated, particularly as the peak months of July, August, and September approach.
Additionally, Ryanair is facing challenges from rising labor costs and has attributed some difficulties to delays in aircraft deliveries from Boeing, a recurring issue for O’Leary. Despite support for Boeing following a recent incident involving a 737 Max 9, O’Leary has long urged the manufacturer to improve its operations.
O’Leary also stated that customers seem to be feeling the strain of rising inflation and slow economic growth within the European Union, which may prompt Ryanair to operate a smaller fleet. He indicated that the airline would have reduced capacity for summer 2025 compared to earlier plans due to Boeing’s delivery issues, leading to two years of stagnant capacity growth. He suggested that if consumer pressure continues over the next 12 to 18 months, this strategic shift might turn out to be beneficial for Ryanair.