Ryanair is experiencing disappointment in its business performance, reflected in a 17% drop in its stock value following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), which remains on par with last year, but profits nearly halved to €336 million. CEO Michael O’Leary noted that although passenger numbers increased by 10% to 55 million, achieving this growth has required significant effort.
O’Leary pointed out that despite strong traffic growth, pricing has been a challenge. The company has had to continuously stimulate fares and bookings, leading to disappointing close-in performance just before the peak travel months of July, August, and September.
In addition to these challenges, Ryanair is facing higher labor costs and has expressed frustration with Boeing’s ongoing delivery delays. O’Leary has long critiqued the planemaker, and while he has supported the company after recent incidents, he has urged Boeing to improve its operations.
O’Leary also commented that Ryanair’s customers appear to be feeling increased pressure due to inflation and slowing economic growth within the European Union. This situation might result in the airline operating with fewer aircraft in the near future.
Looking ahead, O’Leary stated that Ryanair will have less capacity available for the summer of 2025 than originally planned, which may lead to two years without significant capacity growth. He suggested that operating with reduced capacity could be beneficial if consumer spending remains tight in the upcoming months.