Ryanair is expressing dissatisfaction with its recent business performance, a sentiment echoed by its investors. The Irish low-cost airline’s shares have plunged 17% following the release of a quarterly earnings report that fell short of expectations. The reported revenue stood at €3.6 billion ($4 billion), unchanged from the previous year, while profits nearly halved to €336 million. CEO Michael O’Leary noted that while more passengers are using their flights—up 10% to 55 million—this has come at a cost, as the airline has been forced to constantly adjust fares and bookings.
O’Leary highlighted dissatisfaction with close-in fare performance, which has been weaker than anticipated as the peak travel months of July, August, and September approach. Alongside declining demand, Ryanair faces increased labor costs and has attributed some of its challenges to ongoing delivery delays from Boeing. Despite previous incidents, including a recent mid-flight issue with a 737 Max 9, O’Leary has remained critical of Boeing’s reliability.
He also mentioned that customers appear to be experiencing more financial strain compared to the initial phases of the post-COVID-19 economic recovery, as rising inflation and stagnant growth take their toll in the European Union. As a result, Ryanair is planning to reduce its capacity for summer 2025, indicating that the airline may adapt to a situation where consumer spending remains constrained for the foreseeable future. O’Leary suggested that operating with fewer aircraft may ultimately be advantageous for Ryanair during this challenging period.