Ryanair has expressed disappointment with its recent business performance, leading to a 17% drop in its stock following a quarterly earnings report that fell short of expectations. The Irish budget airline reported revenue of €3.6 billion ($4 billion), nearly unchanged from the previous year, while profits were significantly reduced to €336 million.
CEO Michael O’Leary noted that while the number of passengers increased by 10% to 55 million, achieving this growth has required considerable effort. He indicated that fare stimulation and booking encouragement are necessary, as recent close-in bookings have been underwhelming, especially ahead of the peak travel months of July, August, and September.
Ryanair is also grappling with increased labor costs and attributed some of its struggles to delays in aircraft deliveries from Boeing, a recurring issue for O’Leary. Despite facing challenges such as a mid-flight incident with a 737 Max 9, he has urged Boeing to improve its performance.
Furthermore, O’Leary highlighted that consumers in the European Union seem to be feeling more economic pressure than they did during the initial recovery phase from COVID-19. This situation may lead to reduced flight capacity, with the airline expecting to have less capacity in summer 2025 than initially planned due to Boeing delivery delays. O’Leary suggested that operating with fewer aircraft could ultimately benefit Ryanair if consumer spending remains constrained in the near future.