Ryanair has expressed dissatisfaction with its recent business performance, mirroring investor concerns as the airline’s stock has plummeted by 17% following the announcement of a weaker-than-expected quarterly earnings report. The Irish budget airline reported revenues of €3.6 billion ($4 billion), which remained unchanged from the previous year. However, its profits dropped significantly, falling nearly 50% to €336 million.
CEO Michael O’Leary noted that while passenger numbers are increasing—up 10% to 55 million—this growth is accompanied by increased efforts and price adjustments. He mentioned on the earnings call that while traffic is strong, it comes at a cost, as the company struggles with disappointing close-in bookings, particularly heading into the peak summer months of July, August, and September.
In addition to the declining demand for air travel, Ryanair is facing rising labor costs and has attributed some challenges to ongoing delays in aircraft deliveries from Boeing, an issue O’Leary has frequently criticized. Despite a recent incident involving a 737 Max 9, he has maintained confidence in the airline while urging Boeing to improve its delivery timelines.
O’Leary also highlighted that customers are showing signs of financial strain, with economic pressures from inflation and slow growth becoming more pronounced in the European Union. He indicated that operating fewer aircraft might benefit Ryanair under current market conditions.
“We will have less capacity going into summer 2025 than originally planned with our Boeing deliveries, leading to a period of no capacity growth for two years,” O’Leary stated. “If consumer pressure continues over the next year to 18 months, this could position us favorably.”