Ryanair has expressed disappointment with its recent business performance, which has resulted in a 17% drop in its stock value. The Irish low-cost airline reported quarterly revenue of €3.6 billion ($4 billion), nearly unchanged from the previous year, but profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted that while the airline is successfully attracting more passengers, achieving this goal requires significant effort.
On an earnings call, O’Leary pointed out that passenger traffic increased by 10%, reaching 55 million, but emphasized that this growth comes at a cost. He mentioned the need for continuous fare stimulation and expressed concerns over disappointing bookings as the peak months of July, August, and September approach.
In addition to weaker demand, Ryanair is grappling with rising labor costs and has also criticized Boeing for ongoing delivery delays, which have been a persistent issue for the airline. While O’Leary has defended Boeing in light of recent troubles with the 737 Max 9 aircraft, he has repeatedly urged the manufacturer to improve its performance.
O’Leary observed that Ryanair’s customers appear to be feeling the impact of rising inflation and slow economic growth within the European Union. This situation may lead Ryanair to operate fewer flights than initially planned. He stated, “We will have less capacity into summer 2025 than we originally scheduled with our Boeing delivery, and then, we’re into two years of essentially no capacity growth at all.” He suggested that managing reduced capacity might be beneficial if consumer pressure continues for the next year or 18 months.