Ryanair is expressing disappointment with its recent business performance, leading to investor dissatisfaction as well. The Irish budget airline’s stock has dropped 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), matching last year’s figures, but profits plummeted to €336 million, nearly half of last year’s amount. CEO Michael O’Leary noted that while the number of passengers has increased by 10% to 55 million, achieving this growth has required significant effort and price adjustments.
O’Leary emphasized the challenge in maintaining fare levels and managing bookings, particularly leading into the busy months of July, August, and September, which have shown disappointing results. The airline is also grappling with higher labor costs, along with delays in aircraft deliveries from Boeing, a long-standing issue for O’Leary. Despite recent operational challenges, he has continued to support the company, urging Boeing to improve its delivery processes.
Moreover, O’Leary indicated that Ryanair’s customers may be experiencing financial strain as a result of prolonged inflation and slow economic growth within the European Union. This situation could potentially benefit Ryanair since the airline plans to reduce its capacity for the summer of 2025 compared to what was originally scheduled due to Boeing’s delays. He mentioned that this could be advantageous if consumers face pressures in the upcoming year and a half.