Ryanair has expressed dissatisfaction with its recent business performance, leading to disappointment among investors, as the airline’s stock has declined by 17%. The Irish low-cost carrier reported quarterly earnings that fell short of expectations, with revenue remaining at €3.6 billion ($4 billion), comparable to last year’s figures. However, profits decreased significantly to €336 million. CEO Michael O’Leary indicated that while the airline is successfully increasing passenger numbers, achieving this growth requires considerable effort.
During the earnings call, O’Leary highlighted that traffic growth is robust, with a 10% rise to 55 million passengers, but it is heavily reliant on pricing strategies. He noted difficulties with last-minute fares and bookings, which have underperformed, especially as the airline approaches peak travel months—July, August, and September.
In addition to lower demand, Ryanair is facing rising labor costs and has pointed fingers at Boeing’s delays in aircraft delivery, which have long been a concern for O’Leary. While he has maintained confidence in the airline following a mid-flight incident involving a 737 Max 9 earlier this year, he has long urged Boeing to improve its performance.
O’Leary shared with investors that customers seem to be feeling the effects of prolonged inflation and stagnant economic growth within the European Union, which may influence travel behavior. This situation may result in Ryanair operating fewer aircraft in the near future.
“We will have less capacity in summer 2025 than what we were initially expected to have with our Boeing deliveries, leading into a period of essentially no capacity growth for two years,” O’Leary noted. “If consumer pressure continues over the next 12 to 18 months, this might not necessarily be detrimental for us.”