Ryanair is expressing dissatisfaction with its recent business performance, leading to disappointment among its investors. The Irish low-cost airline saw its stock plummet by 17% following the release of a quarterly earnings report that fell short of expectations. The company reported revenues of €3.6 billion ($4 billion), roughly unchanged from the previous year, but profits were nearly halved to €336 million. CEO Michael O’Leary acknowledged that while more passengers are flying with Ryanair — an increase of 10% to 55 million — it comes at a price, as the airline is exerting significant effort to boost bookings and fares.
During the earnings call, O’Leary noted that although traffic growth is strong, the focus on stimulating fares and bookings has become necessary. He pointed out that recent booking performance has been disappointing, especially in the lead-up to the crucial summer months of July, August, and September.
In addition to softening demand, Ryanair has been facing increased labor costs and has highlighted delivery delays from Boeing as an ongoing issue. O’Leary has been critical of Boeing in the past while remaining supportive of the company despite some incidents involving aircraft.
O’Leary also conveyed concerns about the airline’s customer base, indicating that consumers in the European Union appear to be feeling the strain of inflation and slowing economic growth more acutely than they did early in the recovery from the COVID-19 pandemic. He suggested that having a reduced capacity going into summer 2025 due to delayed deliveries from Boeing might actually benefit the airline if consumer pressures persist over the coming year and a half.