Ryanair is expressing disappointment in its business performance, a sentiment echoed by investors as the airline’s stock has fallen by 17% following a lackluster quarterly earnings report. The Irish budget carrier reported revenues of €3.6 billion ($4 billion), a figure that remains largely unchanged from last year, while profits plummeted nearly 50% to €336 million. CEO Michael O’Leary noted that, although more passengers are flying with Ryanair—up 10% to 55 million—achieving this growth comes with challenges.
During the company’s earnings call, O’Leary remarked on the strong passenger traffic but highlighted that it comes at a cost. “Traffic growth is strong, but we’re having to continually stimulate fares and bookings. The bookings for upcoming peak travel months have been particularly weaker than anticipated,” he said.
In addition to softer demand, Ryanair faces rising labor costs and has been affected by delays in aircraft deliveries from Boeing, an ongoing issue for O’Leary. While he has defended the company after a recent incident involving a 737 Max 9, he has urged Boeing to improve its delivery process.
O’Leary also informed investors that customers are exhibiting signs of strain, possibly due to years of inflation and sluggish economic growth across the European Union. This situation may lead to a strategic advantage for Ryanair, albeit through reduced operational capacity.
“We will have less capacity in summer 2025 than we initially planned due to Boeing delays, leading us into two years with no growth in capacity at all,” O’Leary stated. “If consumers continue to face economic pressure for the next year or 18 months, it might not be the worst position for us to be in.”