Ryanair is expressing dissatisfaction with its recent business performance, which has led to investor disappointment as well. The Irish low-cost airline saw its stock plunge by 17% following a quarterly earnings report that fell short of expectations. The company’s revenue remained stable at €3.6 billion ($4 billion), mirroring last year’s figures, but profits nearly halved to €336 million. CEO Michael O’Leary noted that although more passengers are flying with the airline, achieving this growth has required considerable effort.
During the earnings call, O’Leary highlighted that while traffic grew by 10% to 55 million passengers, this growth is contingent on pricing strategies. He remarked on the necessity for ongoing fare stimulation and how recent booking patterns have been weaker than anticipated, especially as the peak summer months of July, August, and September approach.
Additionally, Ryanair is grappling with increased labor costs alongside higher demand challenges. O’Leary also pointed to ongoing delays from Boeing as a contributing factor to the airline’s struggles, a point he has been vocal about in the past. Despite recent issues, he continues to advocate for improvements from the aircraft manufacturer.
O’Leary indicated that customers of the airline seem to be feeling the economic pressure more acutely compared to earlier in the recovery from the COVID-19 pandemic, particularly due to inflation and slow economic growth within the European Union. He suggested that this could lead to a strategic advantage for Ryanair as they plan to operate fewer aircraft.
“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 explained. “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.”