Ryanair is expressing dissatisfaction with its recent business results, leading to disappointment among investors. The Irish budget airline’s stock has fallen by 17% following a quarterly earnings report that fell short of expectations. Revenue stood at €3.6 billion ($4 billion), unchanged from the previous year, but profits plunged nearly 50% to €336 million. CEO Michael O’Leary noted an increase in passengers, yet emphasized that attracting these customers is becoming increasingly challenging.
O’Leary highlighted the strong traffic growth, with a 10% rise to 55 million passengers, but indicated it comes at a cost. He mentioned the necessity to continually stimulate fares and bookings, with recent performance and close-in bookings disappointing, particularly ahead of the busy months of July, August, and September.
The airline is also grappling with lower demand, rising labor costs, and ongoing delivery delays from Boeing, which O’Leary has criticized for years. Although he has remained supportive of Boeing after a recent incident involving a 737 Max 9, he has urged the manufacturer to improve its operations.
Furthermore, O’Leary informed investors that passengers seem to be feeling the impact of inflation and slow economic growth in the European Union more acutely than during the early recovery from COVID-19. He suggested that having fewer jets might actually benefit Ryanair in the coming period.
“We will have less capacity into summer 2025 than initially planned due to Boeing delivery issues, leading into two years with no capacity growth,” he noted. “If consumers are under pressure for the next year or 18 months, that may not be the worst situation for us.”