Ryanair has expressed disappointment in its business performance, leading to investor dissatisfaction as well. Following the release of a weaker-than-expected quarterly earnings report, the Irish budget airline’s stock plummeted by 17%. The company’s revenue stood at €3.6 billion ($4 billion), which was roughly on par with last year’s figures, but profits nearly halved to €336 million. CEO Michael O’Leary noted an increase in passenger numbers, indicating that while more people are flying, it requires significant effort to achieve this.
Traffic growth was robust, with a 10% rise to 55 million passengers, but O’Leary emphasized that this growth comes at a cost. He mentioned that the airline has been forced to continuously adjust fares and bookings, with close-in fares and performance falling short of expectations, particularly as the peak months of July, August, and September approach.
In addition to weaker demand, the company faces rising labor costs and has attributed some challenges to delays in aircraft deliveries from Boeing, a longstanding issue for O’Leary. Despite a turbulent year that included a mid-flight incident with a 737 Max 9, he has consistently urged Boeing to improve its operations.
O’Leary also pointed out that Ryanair’s customers seem to be feeling the impact of prolonged inflation and slow economic growth within the European Union. He suggested that a reduction in the number of available aircraft might actually benefit Ryanair during periods of consumer strain.
“We will have less capacity into summer 2025 than we are originally scheduled to have with our Boeing delivery, and then, we’re into two years of essentially no capacity growth at all,” O’Leary stated. “And if the consumer is going to be under pressure for the next year or 18 months, that might not be the worst place to be.”