Ryanair has expressed disappointment over its recent business performance, leading to a significant drop in investor confidence. The low-cost Irish airline’s stock has plummeted by 17% following the release of a quarterly earnings report that fell short of expectations. The company’s revenue remained stable at €3.6 billion ($4 billion), the same as the previous year, but profits nearly halved to €336 million.
CEO Michael O’Leary acknowledged an increase in passenger numbers, reporting a 10% rise to 55 million, but attributed this growth to discounted fares and aggressive marketing efforts. He noted challenges in attracting close-in bookings, which have underperformed compared to forecasts, especially as the busy summer months of July, August, and September approach.
The airline is contending with weaker demand alongside rising labor costs, and has pointed fingers at Boeing for ongoing delivery delays, a longstanding issue for O’Leary. Despite previous support for Boeing after an incident involving a 737 Max 9, he has continuously urged the manufacturer to improve its performance.
O’Leary also mentioned that customers are feeling the economic pressures that have been building up in the European Union due to inflation and sluggish growth. As a response, he indicated that Ryanair may reduce its flight capacity for the summer of 2025 due to revised Boeing delivery schedules. He suggested that operating with fewer aircraft could be beneficial if consumer demand remains strained over the next year to 18 months.